Lyons-Mehama Water District is asking district voters to consider a general obligation bond authorization at the election on November 5, 2019. This letter is intended to answer questions frequently asked by voters.
What is the general obligation bond authorization? A bond issuance is a way for a district to borrow funds in order to pay for large projects. The Lyons-Mehama Water District is
proposing a bond issue order to finance capital costs of the water system. If approved by voters, the district will issue general obligation bonds in an amount up to $4.875M. The
bonds would mature in 30 years or less from the date of issuance, and may be issued in one or more series.
What projects will the bond pay for? If approved, the bond would be expected to pay for:
The replacement of two storage reservoirs that have reached the end of their useful life;
The purchase of a new approximately 1.3Mgallon tank to promote system resiliency and provide additional storage capacity.
The installation of two new water mains to assist with water delivery and provide higher fire flow capacity.
The refinance of outstanding borrowings for related capital costs; and
The funding of site improvements, demolition, and equipment and bond issuance costs.
Will the bond increase taxes? Yes, Under the proposal, the estimated annual tax rate would be $1.15 per $1000.00 of assessed property value. This is an estimate only, based on the best information available from the county assessor at the time of the estimate. The actual levy rate may differ due to changes in interest rates and assessed values.
Who will oversee the spending of the proceeds of the bond? If approved, the District would establish a citizen oversight committee to ensure proceeds are used for the purposes indicated.