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Spring Hill council authorizes state loan application for $128 million wastewater plant plan
Summary
After a public hearing, the Spring Hill City Council approved a resolution authorizing staff to apply for a Kansas SRF loan as part of a financing strategy for a proposed 5,000,000-gallon-per-day wastewater treatment plant estimated at $128 million; council approved the measure unanimously (4-0).
The Spring Hill City Council on a 4-0 vote authorized staff to apply for a Kansas State Revolving Fund (SRF) loan as one piece of financing for a planned new wastewater treatment plant.
City staff presented the project as an initial 5,000,000-gallon-per-day treatment plant with an engineer's estimate of about $128,000,000 and said the city would pursue SRF financing first and then pursue federal WIFIA funding as needed. "We are interested in constructing a new wastewater treatment facility," said Rhonda Dunn, a city staff member who summarized the project's scope and financing approach.
Why it matters: staff said the existing plant is at about 71% capacity and that the roughly $128 million estimate reflects initial design work. Council members pressed staff on how the project would affect sewer user rates and on loan terms. City staff said the goal is to bridge the funding gap with grants and low-cost loans so existing customers are not asked to absorb large one-time increases; current sewer charges cited in the presentation were $10.48 per 1,000 gallons, compared with nearby jurisdictions the staff cited for context.
During the meeting the city’s consultant on the loan process, Franchesca McCann of Black & Veatch, told the council that SRF and WIFIA processes often coordinate on environmental requirements and that SRF officials can be patient with applications if the city is also pursuing WIFIA. "There is not a specific kind of mandated timeline," McCann said, noting flexibility where both programs are being used.
The council also heard specifics about loan options: staff discussed 20-year terms (with 15-year options available), the ability to delay payments during construction and to capitalize interest, and that SRF had indicated initial availability in the $25 million range and later $30 million. Staff said WIFIA could be used to fund additional needs but typically carries roughly one percentage point higher interest.
What happens next: staff said an SRF application milestone is due in March and that final acceptance of any loan would return to council for separate approval before the city accepts financing or starts construction. The resolution approved tonight (No. 2026-R-05) authorizes only the application; staff emphasized that loan acceptance and contract awards will come back to the council for future votes.
