Harrisonville holds first reading of revenue-bond call to secure low-interest state loans for water and sewer

At its July 21 meeting the Board of Aldermen held a first reading of an ordinance calling a revenue-bond election that would allow Harrisonville to seek low-interest financing through state revolving loan programs for planned water, sewer and stormwater projects.

City administration described the measure as a mechanism to make the city eligible for State Revolving Fund loans at about 1.75% interest rather than borrowing on the open market where interest rates were described as roughly 5.5%. Brad Ratliff said the board is not asking voters to approve individual projects; rather, voter approval of the bond authorization would permit the city to access the lower-rate loan program.

Ratliff summarized figures from the city’s multi-year plan: about $62.7 million in water projects, $16.5 million in sewer projects and $2.5 million in stormwater projects were included in the nine‑year plan discussed by staff; the presentation indicated the city expects to issue up to roughly $82 million in revenue bonds over the plan period. As an example, staff said a $23 million raw-water line would cost substantially more if financed at market rates vs. the State Revolving Fund rate.

“These, we’re not asking the voters to do these projects,” Ratliff said during the presentation. “We’re asking them to allow us to go in the state revolving fund so that we pay 1.75% interest instead of 5 and a half percent interest.” He added the program is meant to reduce interest costs over the nine‑year project schedule and that projects would not all be constructed at once.

Aldermen asked for a dollar figure to illustrate the interest savings over nine years; staff said they would provide that information at a later meeting. The ordinance will return for a second reading at the Aug. 4 Board meeting.