Henderson council backs phased $57 million Kerr Lake expansion and authorizes staff to seek funding
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Summary
The Henderson City Council approved a phased $57 million plan to expand Kerr Lake Regional Water to a high-rated 20 MGD capacity and authorized staff to pursue additional funding to cover a more-than-$17.107 million shortfall.
The Henderson City Council voted Jan. 11 to accept a phased, third-option design for the Kerr Lake Regional Water 20 million gallons-per-day expansion and authorized staff to seek additional funding to cover an estimated shortfall.
City Manager Edward T. Blackmon told the council that the project’s construction cost is now estimated at $57 million and that the project faces a funding gap of more than $17.107 million. The City of Oxford has requested an additional $6 million from the State; if Oxford receives that amount, Blackmon said Henderson would still need roughly $11.107 million from other sources. Blackmon said staff is pursuing state, U.S. Department of Agriculture and other funding opportunities.
Kerr Lake Regional Water Director Christy Lipscomb and City Engineer Clark Thomas described the option as a phased approach with an adjusted design: the construction would allow 15 MGD as built capacity with provisions to achieve a high rating of up to 19 MGD. Lipscomb said current peak summer usage is about 10 to 10.7 MGD and that Henderson currently has comparatively low water rates within a 100‑mile radius.
Lipscomb also explained that the delay of the 20 MGD upgrade made replacement of an obsolete high‑service pump necessary; separately, Council approved a contract to replace that pump (see Votes at a Glance). The phased plan, she said, will allow the older portion of the plant to remain in service while the new work proceeds.
Council members asked about likely impacts on residential rates. Blackmon said the immediate impact on water rates is unknown, though an increase is likely and would be determined as funding and final design are resolved. Clark Thomas and Lipscomb noted some state conditions for achieving the high rating must still be approved by state regulators.
Council Member Melissa Elliott moved to approve Resolution 21‑03 accepting the Kerr Lake Advisory Board recommendation and authorizing staff to secure additional funding; Council Member Ola Thorpe‑Cooper seconded. The resolution passed 6–0 with Council Members Sara M. Coffey and D. Michael Rainey absent.
Next steps: staff will continue funding discussions with state and federal partners and will return to Council to appropriate any funds secured and to approve final contract documents.