Latest NewsNews Joplin MOTrending

Kansas pays off it’s reservoir debt 8 years ahead of schedule

TOPEKA – Governor Laura Kelly today announced that, by paying off state debt on essential water storage ahead of schedule, her administration has saved Kansas taxpayers more than $30 million.

“I believe in fiscal responsibility, and by paying down reservoir debt early, millions of dollars can now be directed toward things like reducing taxes, fully funding schools, and investing in law enforcement and infrastructure,” said Governor Laura Kelly. “These payments also help secure a reliable water supply for Kansas residents and businesses, now and for years to come.”

The administration accomplished this through two water projects. First, in 2022, Governor Laura Kelly signed bipartisan Senate Bill 267, which included a payment of nearly $80 million in debt owed by the state to the U.S. Army Corps of Engineers (USACE) for water supply storage in certain federal reservoirs in Kansas.

The $80 million payment eliminated debt owed for Clinton Lake, Hillsdale Lake, and Big Hill Lake, and will also be able to help pay down additional debt owed for Perry Lake and Milford Lake. This investment in reservoir water supply storage will save Kansas approximately $27.6 million in interest payments that would have been made over the lifetime of these contracts.

Second, as recommended by Governor Kelly for the FY 2022 budget, the Legislature agreed to pay $332.2 million in bonded debt off early, including the bond issued for the dredging project at John Redmond Reservoir, which restored water supply capacity needed for the operation of the Wolf Creek nuclear power plant. The state had been paying approximately $1.6 million each year against this debt.

By paying off the John Redmond Reservoir debt approximately 8 years ahead of schedule, the state will save approximately $3.2 million in future interest payments.

Show More
Back to top button