Liberal weighs $1.5m increase to water-main loan
Liberal, City of, Kansas · Meeting date: October 27, 2026 · Published: October 28, 2026
The proposed third amendment to Liberal’s KDHE water-infrastructure loan would lift borrowing authority for KPWSLF Project No. 3077 from $4.068 million to $5.568 million. The project replaces 14 sections of ageing cast-iron water main with 6-inch and 8-inch PVC pipe at locations across the city.
Key points
- The proposed amendment would add $1.5 million to the KPWSLF Project No. 3077 loan ceiling.
- The project scope is the replacement of 14 sections of old cast-iron main with 6-inch and 8-inch PVC mains.
- Staff said post-Covid inflation had increased the overall project budget, requiring amendments to the original April 2022 loan agreement.
- The amended financing schedule shows 40 semiannual payments through August 2045 and total payments of $6.397 million on $5.568 million of principal.
Full report
Liberal City Commission was scheduled to consider a third and final amendment to its Kansas Department of Health and Environment water-infrastructure loan, increasing the financing ceiling by $1.5 million as the city’s water-main replacement programme approaches completion.
The amendment to Kansas Public Water Supply Loan Fund Project No. 3077 would raise the maximum loan amount from $4.068 million to $5.568 million. The original loan agreement dates from April 26, 2022.
The funded project replaces 14 sections of old cast-iron water main with 6-inch and 8-inch PVC mains at various locations throughout Liberal. City staff attributed the increased project budget to high inflation following the Covid era.
Staff requested approval of Ordinance No. 4660 to execute the loan amendment, close the project funding phase and begin the full repayment schedule. Loan advances are normally made against progress billings, but staff said the city had been awaiting the relevant documents for nearly two years. The remaining amount would therefore be advanced in full once the paperwork is finalised, with the construction fund expected to be zeroed out by year-end.
The amended repayment schedule sets a gross interest rate of 1.45%, with 40 semiannual payments running to August 2045. It lists total payments of $6.397 million, including $5.568 million in principal, $496,447 in interest and $332,662 in service fees.
Under the proposed ordinance, water-system revenues from rates, fees and charges would be the dedicated repayment source, after operation and maintenance costs. The ordinance also provides for unlimited ad valorem taxation on taxable property if system revenues prove insufficient to meet the loan obligations.
This summary was generated by AI based on the source document and may contain errors.
Source: City Commission Meeting, Liberal, City of