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Herington schedules public hearing as it advances $3.61 million wastewater loan application
Summary
City staff told commissioners the city is applying for a 30-year KDHE loan to fund wastewater-plant improvements estimated at about $3,614,120, set a public hearing for Aug. 5, and said the KDHE decision is expected in January; design is targeted for completion by mid-September.
Herington city staff updated the City Commission on a KDHE loan application for wastewater-treatment-plant improvements and outlined next steps and timing.
Unidentified Speaker S2, who led the presentation, said the city is applying for a 30-year loan from the Kansas Department of Health and Environment and walked the commission through a cost breakdown included in the application packet. "It's a 30 year loan," S2 said, adding that the application includes a multi-page cost estimate and a sheet that isolates the primary purpose and projected costs. The current construction estimate presented to the commission was $3,614,120.
S2 told the commission that environmental-review notifications were sent to 12 agencies in April and that most have returned comments. S2 said staff will need affidavits of publication for both the public meeting and the public hearing, meeting minutes, and a council resolution stating the city is applying for the loan. "The loan application is due in mid October," S2 said, and staff hopes to submit the application as soon after the public hearing as possible to allow time to address any follow-up requests from KDHE.
On schedule and financing, S2 said design work is expected to be complete by mid-September but cautioned the KDHE award decision is not likely until January. S2 explained options if the city wants to start construction before KDHE funds are in hand: "If we can get under construction this fall, let's do it. But you'd have to have a bridge loan, so to speak, or some temporary financing for construction," S2 said.
City staff said they will deliver required documents to city staff ("I'll get those documents to Megan's capable hands in short order," S2 said) and urged commissioners to review them before the August public hearing. The commission closed the public meeting portion for the wastewater loan application and moved on to other agenda items.
Next steps: staff will finalize supporting documents and affidavits, proceed with the Aug. 5 public hearing previously scheduled, and prepare the full loan package for KDHE by mid-October.
