HUTCHINSON, Kan. — The Hutchinson City Council approved approximately $19.7 million in sewer and wastewater financing Tuesday, reconsidered an industrial revenue bond proposal following a failed vote and discussed a potential two-year delay to renovations at Memorial Hall.
The council unanimously approved three financing agreements through the Kansas Department of Health and Environment's State Revolving Fund program.
The first authorizes a $2 million loan to rehabilitate approximately 5,800 feet of aging sanitary sewer lines along Avenue F and Van Buren Street.
Utilities Operations Manager Erin Patterson said the city plans to install flexible liners inside the existing pipes rather than excavating and replacing them.
The improvements are expected to extend the life of the sewer lines by approximately 30 years, with construction anticipated in 2027.
The council also approved two loans totaling approximately $17.7 million for the first phase of improvements at the city's wastewater treatment facility.
Those projects include upgrades to the influent pump station, digester complex, biosolids centrifuge, headworks facility and primary clarifiers.
Patterson said the projects represent some of the most urgent needs identified in the city's long-term infrastructure planning.
The three loans carry a 2.84% interest rate over 20 years, with total repayment costs estimated at approximately $25.9 million, including interest and service fees.
Industrial revenue bonds
A proposed $2 million industrial revenue bond ordinance for Sales Data Inc. initially failed on a 2-2 vote, with Mayor Scott Meggers and Councilmember Darrin Truan supporting the measure and council members Steve Garza and Stacy Goss opposed.
Garza later acknowledged he had misunderstood the nature of the company's operations, initially believing the proposal involved a data center.
Lauren Storm, director of strategy and business development for Greater Hutch, told council members the company had exceeded its original projection of 50 new jobs.
"They projected addition of 50 jobs. They're now at 67, and they plan to continue to expand," Storm said.
Garza subsequently moved to reconsider the ordinance after receiving clarification about the company's operations. The motion passed 3-1, with Goss opposed.
The council separately approved $6 million in industrial revenue bonds for Prairieland Partners by a 3-1 vote, with Goss opposed.
Both projects include requests for 10-year property tax abatements. City officials said the companies, not the city, would be responsible for repaying the bonds.
Memorial Hall renovations
The council also received an update on the Ad Astra STAR bond district, which includes the Cosmosphere expansion, the Landmark project and Memorial Hall renovations.
Finance Director Angela Richard said updated projections estimate approximately $27 million in incremental sales tax revenue over 20 years, although financing restrictions would limit initial bond issuance to approximately $8.7 million in principal.
The city plans to prioritize funding for the Cosmosphere and Landmark projects.
"What this means for Memorial Hall is that we will likely have to wait and issue GO debt in a couple years," Richard said.
Parks and Facilities Director Justin Combs said updated renovation estimates are significantly higher than an earlier $6.5 million projection, forcing the city to reconsider the scope of improvements.
Public comments, airport rates
Council members also reached a consensus to return to five-minute public comments and allow residents to address agenda items when they are considered.
Goss had questioned the city's recent three-minute speaking limit, saying it conflicted with existing city code.
The council also reviewed proposed lease rates at Hutchinson Regional Airport but took no formal action. Additional discussions with airport tenants and advisory committee members are expected.
The council's next regular meeting is scheduled for Nov. 17.