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Smithville officials warn water and wastewater fund shortfall; rate study planned for fall 2025
Summary
Finance Director Rick Welch warned the Board that combined water and wastewater fund reserves will be depleted as early as 2028 given current project lists; staff outlined major projects and said the city will explore grants, loans and bonds and will conduct a rate study in fall 2025.
City finance and utilities staff warned the Smithville Board of Aldermen on July 1 that the combined Water and Wastewater Fund faces significant financial strain as the city initiates a series of large infrastructure projects.
"The City's Water and Wastewater Fund is currently facing significant financial challenges," Finance Director Rick Welch said in his presentation, summarizing that multiple high‑cost upgrades and expansions will exceed available fund reserves and likely require external financing through grants, loans or bonds. Welch said fund reserves are projected to be depleted in 2028 under the current project list (an alternate project list shifts depletion to 2029), prompting discussions about borrowing and long‑term debt service implications.
Utilities Operation Manager Dave Schuerger and Public Works Director Chuck Soules reviewed items included in the FY2026 budget and the Water and Wastewater Master Plan. Soules warned that with recent developments at Clay Creek and Fairview, the Wastewater Treatment Plant will meet capacity when those neighborhoods are fully developed.
Staff listed several planned projects and estimated costs including a 144th Street Lift Station (construction estimated at $2,500,000), a federal earmark for that lift station ($450,000), a Smith's Fork force main (construction $600,000), McDonalds/Central Bank lift station engineering ($100,000), a Water Plant Expansion Phase I (construction estimated at $7,500,000) and a Wastewater Treatment Plant expansion (construction estimated at $3,000,000). Staff also identified additional water and wastewater funding needs and recommended exploring a combination of grants, loans and bonds to close the gap.
Welch said the city plans to conduct a rate study in fall 2025 to evaluate whether rate adjustments will be needed to support debt repayment and ongoing operational costs. Board members did not take a formal vote on any financing measure during the work session; staff will return with financing options and timing.
