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La Cygne moves forward on multi‑phase water distribution project; USDA letter signed
Summary
La Cygne authorized USDA paperwork and hired consultants to advance a multi‑phase water distribution project. Phase 1 carries a roughly $1.5 million price tag; Phase 2 could total about $6.6 million and would raise typical bills for a 5,000‑gallon user to an estimated $58–$79 per month depending on scope.
The La Cygne City Council authorized the mayor to sign a USDA ‘Letter of Conditions’ and an Obligation of Funds request for Phase 1 of a planned water‑distribution upgrade, keeping federal loan funds available while engineering and environmental reviews continue. The approved paperwork preserves access to grant and loan funding the city is pursuing for its water project.
BG Consultants described two alternative scopes: Phase 1 (estimated $1,504,020) would loop the north storage tank and replace about 4,100 linear feet of PVC on East Market Street; Phase 2, which would add replacement of aging distribution lines throughout the town, carries an estimated total cost of $6,601,820. Staff presented preliminary customer impacts: average residential users of about 5,000 gallons per month could see monthly charges in a range of roughly $58.97 (Phase 1 only assumptions) to $78.97 if the larger Phase 2 work is completed and financed as proposed. Council directed staff to pursue feasibility for Phase 2 and approved BG Consultants’ contract amendment for Phase I design work.
To refine rate and revenue options, the council hired Carl Brown Consulting to perform a water‑rate analysis (contract capped at $6,000, to be completed by May 1). USDA officials noted national pool funds are not guaranteed for Phase 2 and that the city may have to combine debt if both phases move forward. Council members asked BG Consultants for rate‑option graphs and a list of large water users for further discussion at upcoming workshops.
