A proposal to update nearly 5,000 outdated water meters with funds from the Kansas Department of Health and Environment was tabled Tuesday by the Manhattan City Commission.
At the heart of the discussion was the funding from the KDHE for the project, which is estimated to cost $3,084,230. The funds would come from a low-interest loan entitled “Kansas Public Water Supply Loan Fund,” which carries a loan originating fee of $7,729. However, there is a 40 percent principal forgiveness, which translates into a savings for the City of $1,233, 700.
“Are we making a mistake today, just because we get debt forgiveness?” Commissioner Rich Jankovich asked. “I know that’s a reason to jump on the band wagon and, as a banker, I’m saying go for free money. But it’s not free money.”
Jankovich said the Commission need to really examine the proposal beyond the ability to eliminate or re-allocate a meter reading position, questioning the lifespan of the automated or radio-read meters employed by the city. Of Manhattan’s 15,565 water meters, remote-read and radio-read meters make up the majority, with 4,767 manually-read water meters still sprinkled throughout the city.
“What’s the cost benefit ratio?” Mayor Jim Sherow asked. “If we do business as usual, as opposed to using this loan.”
No new meter readers have been added in Manhattan since 1998, when a fourth was added after the City grew to 12,000 meters. The issue will be discussed again at a future City Commission meeting.
