Marion seeks project so it can borrow more
Marion is looking for a project, or projects, on which it can spend an additional $400,000 it can borrow from Kansas Power Pool.
The money is left over from bonds sold last year by the power pool to pay for with electrical service work.
Marion got $3.1 million last year for an ongoing voltage upgrade.
Further money from KPP would have to be related to that project, city administrator Mark Skiles told council members.
Several other cities got bond money through KPP, and the $400,000 is left over because some projects in other cities were completed for less money than anticipated.
KPP would expect the money to be paid back, with 2.56% interest, over 19 years.
“What I am asking from you is to present additional projects to KPP that we can do,” Skiles told council members.
Council member Ruth Herbel was in favor of granting Skiles’s request and made a motion to give him authority to propose projects to KPP, but council member Zach Collett wanted more control.
“I’m saying before the agreement is signed, he brings it back to us and we approve it,” Collett said.
Council members voted unanimously to have Skiles present projects for approval by KPP, but bring the proposals back to the council for final approval.
Marion is repaying its existing bond debt at $222,000 a year. If the city asks for up to $400,000 more, its KPP payment would be $227,000 a year, Skiles said.
Marion’s power upgrade originally estimated 200 poles would need to be replaced. As work was done 350 poles needed to be replaced.