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Commission adopts ordinance to add $2.7 million to KDHE revolving loan for water plant work
Summary
The commission approved Ordinance S-3305, authorizing execution of a first addendum to a KDHE revolving loan that adds $2.7 million to finish remaining work at the water treatment plant; commissioners said the December rate increase anticipated the added debt service.
The Junction City Commission voted March 18 to approve Ordinance S-3305, which authorizes city officials to finalize a first addendum to a Kansas Department of Health and Environment (KDHE) revolving loan adding $2,700,000 for work at the city’s water treatment plant.
City staff said the additional funds cover work discovered during construction, including severely corroded piping described as being penetrated to the point that “you could put a screwdriver through” the pipe. The loan addendum also includes amortization schedules blended with the city’s existing loan balances, staff said.
Why it matters: Staff told commissioners that the rate increase the commission approved in December was intended to anticipate the added debt service. The work covered by the addendum is described as the final piece of the water treatment plant project; staff said the plant is roughly 95–97% complete and remaining timing is driven by materials on order.
Roll call: The ordinance passed on a recorded roll-call vote with all five members present voting yes: Commissioner Peterson, Commissioner Larson, Vice Mayor Gordon, Commissioner Gutierrez and Mayor Landis.
What’s next: Staff will execute the addendum and route final signatures to KDHE and the city clerk. Commissioners said they expect the previously adopted rate adjustments to cover the additional debt service without an immediate new rate increase.
