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Pawnee City Council reviews SRF and USDA financing options for water-system upgrades
Summary
At a March 24 meeting, the council heard from JEO engineer Tyler Keenan about a low-interest SRF loan and a USDA package that could include a $353,000 grant if the project reaches $2,795,000; clerks will consult the city auditor before the council decides which elements to pursue.
Pawnee City — The Pawnee City Council on March 24 heard details on financing options for planned water-system improvements, including a new municipal supply well, an additional well generator and replacement of water meters.
Tyler Keenan of engineering firm JEO told the council that the State Revolving Fund could offer a loan at 1.4% interest over 30 years, while a USDA package includes a $353,000 grant paired with a 2.75% loan over 40 years but only if the project cost reaches $2,795,000. "SRF can offer a loan with 1.4% interest over 30 years," Keenan said, and he confirmed the figures for backup generation and meter replacement were included in his estimates.
City Clerk/Treasurer Tamela Curtis said the USDA grant is contingent on a $2,795,000 project threshold and that the funding packages list different equivalent dwelling units (EDUs): the USDA uses 640, SRF lists 521, while the clerk estimated about 500 actual users. "If the Council decided to go with new well and water meter replacements, it would increase the customer’s monthly bill around $13.34," Curtis said, noting that meter replacement is likely to improve billing accuracy and revenue but could be a burden for some customers.
Council members and Foreman Spencer Cumley raised questions about whether a new well could face seasonal low-water issues and noted ongoing engineering costs. Keenan said engineering and pre-construction services are expected to be about 15–20% of project costs and that construction payments would not be required until after completion, giving the city time to plan for debt service. Clerk Curtis said the city currently carries about $150,000 per year in water debt (10 years remaining) and $119,000 per year in sewer debt (8 years remaining), and she wants to consult the city auditor about the city’s capacity to take on additional annual debt.
The council did not take a vote on financing at the meeting. Members asked the clerks to consult the auditor, then meet again with Keenan after bids and updated cost estimates are available so the council can decide which components to include in the final project scope.
