Water Improvement Project
Currently the city is pursuing a comprehensive water improvement project to replace the deteriorated cast iron mains throughout our community, perform improvements at the wells, and replace the water meters in the system.
As part of this comprehensive project, the city is moving forward with the application process for a revolving loan with loan forgiveness from KDHE. This is to act as interim financing to complete the comprehensive water project. Once the interim financing funds are expended, a permanent financing package though USDA Rural Development is proposed, consisting of grant funds, and a 40-year low interest loan. The loan and grant from USDA Rural Development will pay off the KDHE interim loan in full, and then be utilize to complete the remainder of the project. In the coming months, the city will be developing the permanent financing package with USDA Rural Development. This process is called underwriting, and they will review our financial and customer data to determine what loan rates we qualify for, and if additional grant funds are required to help keep the project repayment affordable.
Rural Development takes water affordability into account during the underwriting process. It is during this process that we will determine what additional grant amount the City qualifies for, and how the overall project will impact our water rates. Rural Development typically includes grant funding if the final monthly water bills are projected to rise above $50 per month, and preliminary projections indicate we will need to raise water rates above that amount in order for us to complete the much needed repairs to the water system. The City intends to repay the water project loan with revenue from the water department. At this time, no impact on property taxes are anticipated due to the water project. As the project continues through the planning phase, the City plans to hold public meetings to share information about the water project, and provide updated financial information as it becomes available.