Hutchinson pursues $4.05m SRF financing for two private-well water extensions

Hutchinson pursues $4.05m SRF financing for two private-well water extensionsThe Hutchinson City Council approved State Revolving Fund loan applications for proposed water-main extensions to Foothills Estates and Lakeview Hills. The projects could receive up to $1.44m in loan forgiveness, but neither will proceed without support from at least 51% of affected property owners.

Council unanimously approved SRF loan applications for a $3.2m Foothills Estates extension and an $850,000 Lakeview Hills extension.

The Foothills scheme would install about 10,000ft of 8in water main for roughly 110 properties; Lakeview Hills would receive about 2,600ft of 8in main serving about 20 properties.

Potential SRF loan forgiveness is $1.1m for Foothills Estates and $340,000 for Lakeview Hills, with 20-year repayment terms.

Residents must establish special assessment districts with approval from 51% or more of properties; all properties within an approved district would be assessed, whether or not they connect to city water.

Hutchinson City Council has authorised applications for State Revolving Fund financing for two proposed municipal water extensions, creating a potential route to city service for subdivisions where residents reported deteriorating private-well conditions. The resolutions, approved unanimously on 6 October, cover a $3.2m project at Foothills Estates and an $850,000 project at Lakeview Hills. The city stressed that authorising applications is not an approval to construct: each scheme requires a special assessment district supported by at least 51% of affected properties before the city would proceed with SRF-funded installation. At Foothills Estates, the proposal comprises approximately 10,000ft of 8in main, plus valves, meters and fire hydrants, for about 110 properties. Staff said the application could secure approximately $1.1m in loan forgiveness. The prospective 20-year loan would be priced at 60% of the prevailing rate; staff said that, when last reviewed, this was estimated at about 2.84%. Residents would remain responsible for connecting their individual service lines to the new main. Property owners would also be assessed if the district is formed regardless of whether they decide to take city water, although they could retain wells for irrigation after demonstrating that the wells are disconnected from their homes. A Foothills resident told the council that water pressure is "terrible" and said households on Sequoia were experiencing brown driveways and equipment problems. Another resident backed the city-water extension, citing similarly poor experiences with private wells. Staff said roughly 70 people had signed an expression of interest, but no formal assessment petition has yet been submitted. The smaller Lakeview Hills proposal would install about 2,600ft of 8in main in a loop connecting to an existing 10in main on 43rd Avenue. It has potential SRF forgiveness of $340,000 and would cover about 20 properties. Staff said the city could contribute up to $250,000 towards a project of this type under its policy, although the allocation would need to be evaluated if both schemes advance. The relevant reserve fund currently holds $200,000 and is replenished by $100,000 annually. For both projects, residents could pay assessments when work is completed or through property taxes over the 20-year loan period. Staff said no detailed engineering has yet been undertaken for Foothills Estates and estimated it would be 10 to 12 months before the city could be positioned to award that work, should the required district and financing advance.