PROP A – Bond Authorization – $20M
Clovercreek MUD’s water and wastewater plants have serviced the community for more than 40 years without significant repairs. Sustained delay of repairs increases financial risk, as emergency repairs typically cost five times more than planned work. Bond authorization allows the MUD to fund improvements to the community’s aging facilities.
- The wastewater aeration tank was originally built in 1985. Continued costs of repairs exceed the cost of a new tank.
- Power outages cause overflows/discharges into receiving waters of wastewater plants. Backup generators are needed to prevent power outage issues.
- The MUD’s blowers have reached the end of their useful life and now operate at noise and energy consumption levels that exceed equipment standards.
- Runoff from the unpaved access road to both plants has resulted in additional maintenance costs and resident complaints.
- The current on-site water well is producing sand and silt at levels that exceed acceptable operational thresholds.
- The hydro tank has developed rust and requires interior and exterior recoating.
- Implementing a SCADA (Supervisory Control & Data Acquisition) system would provide real-time monitoring capabilities for conditions at both plants.
- The MUD’s lift stations are at or past their useful lifespan, requiring recoating, pump replacement, and recoating of ground piping.
PROP B – Refunding Bonds – $20M
Refunding bonds allow state and local governments to restructure debt service payments, achieve savings on outstanding bonds, and secure more favorable interest rates. Refunding bonds give the MUD the ability to refund existing bonds, providing greater financial flexibility through improved interest rates and restructured debt service payments.
PROP C – Increase M&O Tax Cap – $1.50
The MUD’s current maximum Maintenance & Operations tax rate is capped at $0.50 per $100 of assessed value. The MUD is asking to increase to the maximum M&O tax rate, not to exceed $1.50 per $100 of assessed value. This authorization does not itself raise the rate, it simply expands the ceiling the MUD Board of Directors may consider during its annual tax rate review.
FINANCIAL IMPACT
The MUD’s total tax rate of $0.99 per $100 of assessed value, split between $0.49 for debt service and $0.50 for M&O, is currently used to cover maintenance and operating costs and debt obligations. Raising the M&O rate would allow the MUD Board of Directors to shift funds from debt service to M&O without increasing the total tax rate.