RMWD expected to repeal Ordinance 95-1

In April 1995, the Rainbow Municipal Water District board approved Ordinance 95-1 which requires approval by a public vote for the district to incur additional debt if the existing Rainbow debt is more than $1 million.

Rainbow staff and board members now believe that Ordinance 95-1 is handicapping the district's ability to obtain low-cost financing for necessary improvements and, on Sept. 18, Rainbow's board voted 5-0 to hold an Oct. 23 hearing on the possible abolition of Ordinance 95-1.

"The board intends to rescind that ordinance," said Rainbow general manager Tom Kennedy.

Registered voters within the Rainbow Municipal Water District collected a sufficient number of petition signatures to require that the district choose between adopting the requirement for a public vote to incur additional debt or placing the proposal on the ballot.

The Rainbow board chose to adopt the ordinance, and because Ordinance 95-1 was adopted by board action rather than by a public vote no public vote will be needed to repeal Ordinance 95-1.

"We have an opportunity to obtain some very low-cost financing to build some of our infrastructure projects," Kennedy said. "I think it's in the best interest of our ratepayers."