HUTCHINSON, Kan. — The Hutchinson City Council will consider $8 million in industrial revenue bonds for two business expansion projects, financing for wastewater infrastructure improvements and proposed changes to public meeting procedures when it meets Tuesday, Nov. 3.
The council will meet at 5:30 p.m. in the City Council Chambers at City Hall, 125 E. Avenue B.
According to the amended agenda, council members will also review proposed rates and charges at Hutchinson Regional Airport, receive an update on the Ad Astra STAR bond project and consider new labor agreements with the city's police and firefighter unions.
Industrial revenue bonds for two expansion projects
Two proposed ordinances would authorize the issuance of taxable industrial revenue bonds to support expansions by Sales Data Inc. and Prairieland Partners.
The council previously approved resolutions determining the advisability of issuing the bonds for both projects in January.
Sales Data Inc. is seeking authorization for $2 million in industrial revenue bonds to finance the construction, furnishing and equipping of a 10,275-square-foot expansion of its commercial facility.
The company is also requesting a 10-year property tax abatement.
Under the proposed financing structure, the city would become the leaseholder of the property, with Sales Data serving as the lessee. Once the bonds are paid in full, the city would deed the property back to the company.
City officials said the company would be solely responsible for debt service payments and expenses associated with the financing. No city funds or tax revenues would be used to make those payments.
Prairieland Partners is seeking authorization for $6 million in industrial revenue bonds for a 32,380-square-foot expansion of its commercial facility.
The company is also requesting a 10-year property tax abatement on building improvements.
The proposed financing arrangement would follow a similar structure, with Prairieland Partners responsible for bond payments, related expenses and the costs associated with the financing.
According to the staff report, neither project would require city funds to repay the bonds.
Wastewater infrastructure financing
Council members will also consider two ordinances authorizing financing agreements through the Kansas Department of Health and Environment's State Revolving Fund program.
The first involves a $2 million loan to rehabilitate approximately 5,800 feet of the city's existing sanitary sewer collection system.
According to city staff, portions of the collection system are aging and deteriorating, with some sewer mains experiencing infiltration and inflow problems.
The proposed loan carries an interest rate of approximately 2.84% over a 20-year repayment period.
Staff indicated the project was included in the city's approved 2026 budget and previously completed engineering work.
A second ordinance addresses financing for improvements at the city's wastewater treatment facility.
The proposal follows a comprehensive facility inspection completed in April that identified deteriorating infrastructure, regulatory compliance concerns and reduced system reliability.
The financing would support the first year of capital improvement projects identified in the city's Integrated Master Water Plan.
Projects identified in the agenda materials include:
- Influent pump station improvements
- Digester complex improvements
- Biosolids centrifuge replacement
- Headworks improvements
- Improvements to primary clarifiers Nos. 3 and 4
- Other wastewater treatment facility infrastructure
The city previously submitted its loan application to KDHE in October after receiving preliminary approval for the financing program.
The wastewater improvements follow an Oct. 20 council presentation outlining the condition of the treatment facility, potential construction alternatives and future infrastructure needs.
Airport lease rates and charges
Council members will receive a recommendation from the Hutchinson Airport Advisory Committee regarding proposed rates and charges at Hutchinson Regional Airport.
Airport Director Alek Stang said the proposal is intended to establish a consistent, publicly available schedule of base rates for commercial leases, renewals and future negotiations.
The airport's reported 2025 operating revenue was approximately $231,545, compared with an operating budget of approximately $475,682.
City staff said many existing long-term airport leases are approaching expiration and could warrant market-based adjustments.
The proposal would establish baseline rates for commercial hangar space, office space, exclusive-use ramp and parking areas, airport land leases and fuel flowage fees.
According to the staff report, the proposed rates would not automatically apply equally to every tenant. Adjustments could be made for facility conditions, maintenance responsibilities, utilities and other lease-specific factors.
Existing lease agreements would remain governed by their current terms unless renewed, amended or otherwise eligible for adjustments.
No formal action is requested Tuesday. Council members will receive the presentation and provide feedback before a final proposal is brought forward for consideration.
Public meeting procedures
Another discussion will focus on Chapter 2 of the Hutchinson City Code, which addresses procedures during public meetings.
The issue follows discussion at the council's Oct. 20 meeting regarding public participation and how council business is conducted.
Under the procedures outlined in Tuesday's amended agenda, residents wishing to address the council are limited to three minutes and must speak during the designated public comment portion of the meeting.
Comments may address agenda and non-agenda matters within the council's jurisdiction, but public comment on individual agenda items will not be taken when those items are subsequently considered.
The agenda also outlines procedures for council members to request changes to the meeting agenda and submit matters for future consideration.
Those requests can include adding, removing or reordering agenda items, subject to council approval.
The council is scheduled to discuss the procedures Tuesday.
Ad Astra STAR bond update
Council members will also receive an update regarding the Ad Astra STAR bond project.
The item is listed under new business on the amended agenda. No specific ordinance or resolution concerning the project is listed for consideration.
Police and firefighter agreements
The council's consent agenda includes proposed memorandums of understanding for 2027 and 2028 with the Fraternal Order of Police and the International Association of Fire Fighters.
Both agreements are scheduled for consideration alongside other routine business.
The consent agenda also includes an appropriation ordinance totaling $1,260,110.27 and the appointment of Phil Douglas to the Airport Advisory Committee for a three-year term beginning Jan. 1, 2027.
The council will also consider approving minutes from its Oct. 20 meeting.
No public hearings or executive sessions are scheduled.
Tuesday's meeting will take place on Election Day. The council's next regularly scheduled meeting is Nov. 17.