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Topeka moves to reassign bond proceeds, authorize KDHE loan for lead service line work
Summary
Council approved resolutions to reassign unspent bond proceeds and to authorize KDHE loan documents that would support up to about $11 million in combined utility revenue bonds and a KDHE loan for lead service-line replacements; staff said roughly 52% of that principal is expected to be forgiven under the KDHE terms.
The Topeka City Council approved a package of actions to reassign unspent bond proceeds and to authorize documents needed to accept a KDHE drinking-water loan aimed at replacing lead and eligible galvanized service lines.
Josh McInarney, budget and finance division director, told the governing body the item before them was largely procedural: staff proposed reallocating previously authorized, unspent bond proceeds to cover several utility projects rather than issuing new bonds. For the lead service-line work, staff explained the city is seeking to participate in a KDHE loan program to finance replacement of service lines that connect the distribution system to the end user. McInarney said the total loan authorization under consideration was approximately $11 million and that about 52% of the principal would be forgiven as part of the KDHE terms.
Utilities staff told council the project funding would cover the city’s obligations up to the right-of-way; replacing interior plumbing inside homes is separate and would depend on available grant funds or future policy decisions. Staff said the replacement work is not required until 2027 but the city is actively planning the program and refining cost estimates. Council members asked for clarification about whether the loan covers private‑side costs or only public‑side work; staff said cost estimates currently assume work up to the outside of homes and that internal plumbing would be treated separately where grant funds allow.
Council approved the notice of intent and related ordinance and resolutions authorizing the sale and delivery of combined utility revenue bonds to implement the KDHE loan agreement. Votes on each of the related actions were recorded as carried (voice/roll calls recorded by the clerk). The motions in each instance passed without recorded dissents.
