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Council moves to pursue water funding; hears plan to double plant capacity and estimated rate increase
Summary
Council approved an amendment to CDM Smith's contract to submit a DWSRF funding application and authorized pursuing SRF/grant options and potential private financing; staff said upgrades could expand KLRW capacity from 10 MGD to 20 MGD and consultants estimate a roughly 3% water rate increase after project start.
Henderson City Council on April 11 approved Resolution 22-32 to amend an engineering contract with CDM Smith so staff can submit a Drinking Water State Revolving Fund (DWSRF) application tied to the Kerr Lake Regional Water renovation.
City Manager Edward T. Blackmon told council that WK Dickson is conducting a 'Fix and Find' for the Sandy Creek basin after the City found excessive infiltration and inflow that have led to violations; the City plans to seek additional SRF grant or loan assistance to cover roughly $10,000 in unexpected costs beyond the current $2.4 million SRF loan. He also said the Local Government Commission has advised the City may pursue a private loan up to $15 million (with First Bank) to fill financing gaps.
Blackmon said the plant upgrade would increase KLRW capacity from 10 million gallons per day to 20 MGD, supporting future growth, and that consultants estimate about a 3% water rate increase to cover debt service once the project begins. "The increase would not occur until after the project begins," he said, adding that the increase is tied to debt-service needs and the City’s historically low rates.
Council Member D. Michael Rainey moved approval of Resolution 22-32; Council Member Sara M. Coffey seconded. The motion passed unanimously: yes votes from Coffey, Burnette, Rainey, Daeke, Thorpe-Cooper and Spriggs; Williams and Elliott were absent.
Staff said a more definitive rate change will be provided by consultants as the project advances and that any formal rate adjustment would follow required public-notice and budget procedures.
