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Miami County moves to sign KDHE revolving loan as construction financing for Bucyrus sewer project
Summary
County staff recommended the chairman sign a $1.42 million Kansas Department of Health and Environment (KDHE) revolving loan as construction financing for the Bucyrus sewer-line project; staff outlined $3.8 million estimated project cost, roughly $852,000 of forgivable KDHE funds, remaining gap and tight USDA and CDBG timelines.
Miami County staff told commissioners they have received a bond counsel opinion and a draft loan agreement for a $1,420,000 construction loan through the Kansas Department of Health and Environment’s revolving fund to support the Bucyrus sewer-line project.
County staff said the loan will serve as construction financing; KDHE estimates roughly $852,000 of that loan will be forgiven. The project’s total estimated cost is about $3.8 million, funded by a mix of Miami County SPARK funds ($1,000,000), a Spring Hill SPARK contribution ($250,000), a KDHE small systems grant ($1,500,000), a Department of Commerce CDBG allocation ($305,000) and a USDA rural development grant ($89,000). The county’s net bonding exposure was described as approximately $550,000–$600,000, depending on bids.
Staff said the KDHE loan is a 20‑year note at a fixed 2.33% interest rate for the current construction period, and that the plan is to convert to longer-term USDA permanent financing after construction. They described the KDHE payment schedule (semiannual principal and interest) and the need to bid and mobilize contractors soon to preserve USDA funding that staff said is secure for the current federal fiscal year but becomes uncertain after October 1.
County counsel and engineering staff told the board they are close to going out to bid. A condemnation filing may be required for at least one easement; staff said the county has the power of eminent domain and that condemnation proceedings would set fair compensation if negotiations fail.
Ending: Commissioners directed staff to proceed toward executing the loan agreement so the county can bid the project and seek timely construction start; staff emphasized the project must move quickly because of grant deadlines and a consent decree requiring Bucyrus plant repairs.
