Abilene Approves Two State Loans of Up to $400,000 Each for Water and Wastewater Plant Controls

The Abilene City Commission on October 12 unanimously approved two ordinances authorizing loan agreements with the state of Kansas to replace aging control systems at the city's wastewater treatment plant and water production plant.

Each loan through the state revolving loan fund is for up to $400,000, at 2.87% interest, with semiannual payments from 2028 through 2047. Revenue from each utility is pledged to repay the debt, with property taxes pledged if utility revenue falls short.

The projects replace the plants' SCADA systems and programmable logic controllers, which staff said monitor and control treatment processes. Staff said the loan agreements require the city to keep accounts for the systems under generally accepted accounting principles, while the city currently uses the regulatory basis of accounting allowed under Kansas law, and that KDHE said the federal requirement cannot be waived. Interim City Manager Jon Quinday recommended seeking another funding source.

Public Works Director Brad Anderson said the control networks are aging, replacement parts are hard to find, and one electrical malfunction could disable a component. He said the city had looked for grants without success and that the loan application process began about a year and a half ago.

Commissioners approved Ordinance 26-3492 for the wastewater plant and Ordinance 26-3493 for the water plant, each by a 5-0 vote.