Wednesday, October 15, 2008
Cities like St. Joseph could get help for stormwater projects from a dried-up grant program if Missouri voters approve a measure on the November ballot.
St. Joseph likely faces hundreds of millions of dollars over the next several decades to reduce overflows from combined sewers that carry both stormwater and sanitary sewage. One of the few outside sources to help foot the bill - a state revolving grant and loan program - has gone unfunded for about two years.
Amendment 4 to the state constitution would clear some of the technical hurdles to restart the program, which is authorized to issue $145 million in funding, according to the Missouri Department of Natural Resources. The bigger issue, which the ballot issue wouldn't resolve, is whether state officials will actually fund the program again.
"There's no guarantee that the bonds will get started again," said Joy Reven, who oversees the stormwater grant-loan program for DNR. "But if (voters) don't pass it, it guarantees you can't start it again."
City of St. Joseph Public Works Director Bruce Woody said the program had funded up to about $200,000 a year before going away.
"Every little bit is helpful, and it reduces our dependence on other sources," Mr. Woody said.
Some of the projects the program helped fund are as follows: the Roy's Branch sewer separation in north St. Joseph, which is currently under construction; $215,000 in matching funds for the Blacksnake Creek detention basin study; Parker Road storm drainage improvements in south St. Joseph; and a citywide stormwater master plan.
By 2007, though, the money flowing to the city dwindled to $72,738, Mr. Woody said.
Missouri voters in 1998 approved $200 million in stormwater bonds for cities and first-class counties - without a tax increase, meaning the money to repay the bonds has to come from the state's general revenue. The state issued $55 million of the bonds through 2007.
But, Ms. Reven said, the state had trouble releasing all of the funds because most cities wanted grants instead of loans. The language of the original ballot issue didn't give DNR the freedom to shift more money into grants.
Thus, the state legislature voted this year to take the program back to voters with the recommended changes.
The flexibility in issuing grants is also important because the IRS now forces tax-exempt bonds to be spent within three years. DNR was worried that it would have trouble getting enough loan requests to release all of the money within three years.
The amendment also would guarantee that the revolving funds remain in stormwater projects - preventing the state Legislature from dipping back into any stormwater funds to solve future budget issues, Ms. Reven said.
Joe Blumberg can be reached
at joeblumberg@npgco.com.


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