Archive for Wednesday, February 18, 2004

City finalizes $3.8 million loan for new sewage treatment plant

February 18, 2004

It's official: The city of Tonganoxie will borrow $3.8 million to finance a new sewage treatment plant.

During a special meeting Thursday, city council members approved a loan set at $3,810,079. Members Velda Roberts, Ron Cranor and Steve Gumm voted to approve the 20-year loan. Mayor Dave Taylor also was in attendance, while Kathy Graveman and Emmett Wetta were absent.

The Kansas Department of Health and Environment will administer the loan. KDHE also has provided a $400,000 grant toward the project.

It is possible the city will not use the entire $3.8 million loan, according to Kathy Bard, assistant city administrator.

"We need to make sure we have enough money so we don't have to make another amendment to the loan," Bard said. "Because that's quite the process actually."

With the lowest bid, BRB Contractors Inc., Topeka, likely will be awarded the wastewater treatment project. The firm's bid was $2,763,000. Of that, $923,000 is for equipment.

The new plant, on which construction could begin in March or April, will be built near the existing plant just east of Tonganoxie.

During the first few years of the loan, which carries an interest rate of 3.08 percent, the city primarily will be repaying interest, Bard said.

Loan payments will begin March 2006. The loan will be repaid through taxes on new development and revenue from sewer customers.

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