(Kansas City, Mo.) – KC Water is working on a new and innovative process to treat wastewater, but it’s expensive. To help finance the costs KC Water has applied for up to $80 million from the State Revolving Fund (SRF) Program. This will allow the City to receive substantially better borrowing terms on the debt that would be issued for this project when compared to issuing conventional sewer revenue bonds.
Participation in the SRF Program follows recommendations from the KC Water Cost of Service Task Force. That group, which wrapped up in 2017 after more than a year of work, recommended KC Water seek subsidies from state and federal programs when possible to mitigate borrowing costs.
“We recognize the burden high rates have on our customers and we strive to be responsible stewards of our financial resources,” said KC Water Director Terry Leeds. “The state revolving loan funds will make a big difference in paying for needed and necessary improvements to our Blue River Wastewater Treatment Plant.”
In November 2018 KC Water was chosen by the Water Infrastructure Finance and Innovation Act (WIFIA) Selection Committee to receive federal financing assistance to pay for the same project.
The state and federal assistance will help KC Water transition from incineration to a Thermal Hydrolysis Process (THP) at its Blue River Wastewater Treatment Facility. The current plant was built in 1966 and uses aging and increasingly unreliable infrastructure to treat and dispose of biological solids collected from wastewater. THP will produce biosolids that are safe for use on gardens and farm fields while also providing biogas to help fuel the plant’s boilers and provide a supplemental source of heat and energy. The process also lowers the amount of waste solids that go to landfills and helps reduce odors. When completed, the facility will be one of just nine plants in the United States to use this process.
For more information, please contact Brooke Givens, Media Relations Coordinator, at brooke.givens@kcmo.org, 816-513-0284.
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KC Water maintains and operates water treatment and distribution systems, stormwater management systems, and wastewater collection and treatment systems for residential and business customers in Kansas City and for wholesale customers in the Kansas City area. KC Water is primarily funded by fees charged to customers based on their use or impacts on the three utility systems.
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