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Oakley council accepts KDHE water‑plant loan, approves airport fuel grant and moves to exceed revenue neutral rate
Summary
The Oakley City Council on July 7 accepted a KDHE loan agreement for a water treatment plant project and passed Ordinance No. 1190 to authorize the loan. The council also accepted a KAIP airport fuel‑system agreement and voted to exceed the revenue neutral mill rate, and it cleared routine consent items including payments and small donations.
The Oakley City Council on July 7 accepted a loan agreement from the Kansas Department of Health and Environment for the city’s water treatment plant project and passed Ordinance No. 1190 to authorize execution of that agreement.
Brock, the city administrator, told the council the loan is “not to exceed 6,800,000.0,” with an estimated principal forgiveness of “2,500,000.0,” an estimated loan amount of “4,300,000.0,” and an interest rate of about 3.4% on a 30‑year note with semiannual payments the packet lists as $116,509. The council voted unanimously to accept the agreement and adopt Ordinance No. 1190.
The council also accepted a Kansas Airport Improvement Program agreement for a new airport fuel system. City staff described a project to replace the underground fuel tank and add a jet fuel tank; council members approved acceptance of the KAIP agreement unanimously. The agreement documentation and cost‑share terms were discussed in staff remarks; exact city share amounts were described in the packet as contingent on final engineering and total project costs.
On the budget, staff presented a 2026 summary that flagged a projected ~44% increase in workers’ compensation costs (driven by a large 2024 claim) and budgeting for health insurance increases. Staff said the proposed budget would exceed the revenue neutral rate and recommended notifying county clerks and setting a budget hearing. The council unanimously approved Resolution 2025‑03 declaring the city’s intent to exceed the revenue neutral rate and scheduled a budget hearing for Sept. 2.
The meeting also cleared several routine consent items and small one‑time payments: approval of minutes, multiple accounts payable registers, a $500 career showcase sponsorship, a $450 donation to the Tri County Amusement Association from tourism funds, and reimbursement of $1,182.19 to another jurisdiction related to a sales‑tax overpayment. All listed motions passed by unanimous vote.
Votes at a glance - Accept KDHE loan agreement and pass Ordinance No. 1190 (water treatment plant): motion passed unanimously. - Accept KAIP agreement (airport fuel system): motion passed unanimously. - Approve Resolution 2025‑03 (intent to exceed revenue neutral rate): motion passed unanimously. - Approve multiple AP registers, the $500 career showcase sponsorship, $450 Tri County donation, and $1,182.19 reimbursement: motions passed unanimously. - Approve employee pay‑step change (employee with start date 06/23/2018 moved to step 2.5): motion passed unanimously.
The council held two short executive sessions on non‑elected personnel and returned without public action following those sessions. Staff will follow up with required loan and grant paperwork and with next steps for the budget timeline.
