Commission acknowledges higher loan repayment for Salem Way sewer project and agrees to steps to increase mill levy

The Osage County Commission voted to authorize the chair to sign a letter to Ms. Hendricks responding to a financial demand letter about the Salem Way Subdivision (Osage County Sewer District No. 1). The letter acknowledges that the loan repayment amount will be “substantially higher than originally anticipated” and states that the county will take necessary steps to increase the mill levy to collect adequate assessments to pay debt service and operating expenses.

Commissioners discussed whether the county will raise the mill levy or use a special assessment and noted that the district is already a separate taxing district. One commissioner said the decision on structure — separate special assessment versus mill-levy increase — would be addressed during budget planning and would be coordinated with amortization schedules and bond terms.

The motion to allow the chairman to sign the letter was read into the record by the chair and the motion carried. Commissioners asked staff to share copies of any signed documents with Frank Maggard and to confirm that the terms agreed to in the demand letter correspond to any contractor agreements.

Commissioners noted this project predates the current board and that additional budget decisions — such as whether to collect funds via regular property tax or a dedicated assessment — must be finalized as part of the 2026 budget process.