Commission considers KDHE loan for Phase 2 of Harrington wastewater project

City staff told the commission that Harrington has been selected for a KDHE loan for Phase 2 of the wastewater treatment plant, discussed estimated terms and how the project fits into a longer multi‑phase plan.

Staff said the loan was "not to exceed $3,614,120" and described a 30‑year note. During the meeting a commissioner confirmed an interest rate of 3.35%, which staff said came in lower than earlier estimates. "You did increase rates enough to build yourself some cushion," staff said, noting that KDHE had been concerned about the city's sewer-reserve balances and that reserves had been down prior to the loan.

Commissioners asked whether current sewer rates would cover debt service and whether Phase 3 would require additional rate increases. Staff said Phase 3 remains several years out and that bid and construction timing would likely push significant construction into 2027 with KDHE timelines pointing to 2028 for first change. "You'll have to get a few years down the road and then see ..." staff said when describing the need to evaluate reserves and future rate impacts.

A motion was made to consider the final loan agreement for the Phase 2 project and to authorize execution of documents. The transcript records the motion text but does not include the vote on that motion, so whether the commission executed the loan documents is not recorded in this transcript.

Why it matters: A KDHE loan at the scale discussed would fund substantial upgrades to the city's wastewater infrastructure and could affect sewer rates and capital planning for years, particularly if future phases are required.

What’s next: Staff will proceed with ordinance publication and, if the commission votes to execute, return executed loan paperwork as required by KDHE.