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Commission moves forward on Laurel Canyon sewer upgrades with USDA, KDHE support
Summary
Geary County commissioners approved a loan resolution and related documents to secure USDA and KDHE funding for sewer rehabilitation and extension in the Laurel Canyon area; officials said the estimated construction cost is about $996,000 with substantial KDHE loan forgiveness and a proposed USDA 40‑year note at about 2.875%.
Geary County commissioners on Monday voted to approve a set of financing steps to proceed with sewer rehabilitation and extension in the Laurel Canyon subdivision.
Public works administrator Jeremy Myers introduced Dan Fisher of USDA Rural Development and Randy Purdue of Kaw Valley, who said the project will rehabilitate an aging sewer system and extend service to lots that currently lack sewer access. "We're going to rehab the existing facility ... and then, extend to some lots that are missing service," Randy Purdue said.
Dan Fisher, USDA deputy state director, outlined the financing picture: KDHE (Kansas Department of Health and Environment) estimated total construction at about $996,000 with an initial KDHE loan‑forgiveness estimate of roughly $598,064. USDA staff proposed a package that included a USDA loan of about $136,000, a USDA grant of roughly $197,000, and a 40‑year note for the loan. "Our rate right now is a 2.875," Fisher said, adding that the rate would apply if the commission signed the request for obligation and that rates could be adjusted later if market conditions change.
Commissioners were told the planned repayment mechanism is a lot special assessment on benefited parcels rather than a county‑wide tax increase. Randy Purdue said final assessments and the split of prior special assessments into the project would depend on bid results and final construction costs.
The commission voted to approve three separate items: the request for obligation of funds, a loan resolution for the USDA loan, and a letter of intent to meet stated funding conditions. The motions were made, seconded and carried by voice vote with commissioners answering "Aye." The county did not record a roll‑call tally in the public portion of the meeting.
Officials said the next steps are to complete design, circulate bids (Officials mentioned an anticipated late‑fall bid period), and then begin construction if funding and bids align with estimates. Staff estimated roughly four months for design and about nine months for construction if the schedule holds.
The project affects an area of roughly 34–35 properties; commissioners discussed that an ordinance could require connection to sewer when mainline service becomes available. USDA and county staff said water‑system issues would be addressed after sewer planning is finalized.
The meeting record shows the commission approved the related loan paperwork so the county can proceed with securing the grants and loan terms necessary to move the project into design.
