The Rollingwood City Council approved an estimated $400 to stuff and mail a Frequently Asked Questions document regarding the upcoming bond election May 12 regarding the city's proposed purchase of the Rollingwood Wastewater System from the Lower Colorado River Authority.

The questions, a four-page document that is currently available at www.cityofrollingwood.com, will be mailed to Rollingwood residents and should arrive by Friday, May 4.

One of the biggest concerns leading up to the May 12 bond election is the cost difference between the city purchasing the wastewater system or leaving the current system in place.

The city estimates that with the current interest rates, the principal and interest of purchasing the plant would cost roughly $665,000 if bonds are issued with a 33-year term, the same time frame as the current LCRA contract. This would result in a potential savings of $110,000 annually.

The city goes on to say that the tax rate cannot be determined at the present time, but a financial plan was created March 21 as a guide to creating a wastewater utility budget for the coming fiscal year.

The plan consists of a property tax rate of 8 cents per $100 of assessed valuation and a residential wastewater rate of $6.35 per 1,000 gallons, and a commercial wastewater rate of $7.58 per 1,000 gallons. While the plan is in place for the fiscal year ending Sept. 30, 2013, there is no guarantee it will remain in place.

"There is no assurance that these rates will be put in place by the next council," Alderman John Hinton said.

"The business deal is that we will save $100,000 a year based on our estimates plus what we can save on our overhead costs," Alderman Barry Bone added. "That's really the business deal that people should focus on because that savings should really be divided up to the citizens and taxpayers of the city in a fair manor. When people try to figure out how this will affect them precisely, they are missing the point of the business deal."

If the bond measure does not pass, the current terms of the outstanding LCRA contract would remain unchanged, but the ownership of the wastewater system could change. The board of directors of the LCRA previously considered selling the Rollingwood System to a private company and could do so again if the city fails to pass the bond needed to purchase the system.