Money matters highlighted the Hays City Commission meeting Thursday evening.

Commissioners voted to approve an ordinance to finance the wastewater treatment plant using the state’s revolving fund.

The city wastewater plant is at the end of its useful life, City of Hays Director of Finance Kim Rupp said.

Three funding options were available to the city: the state revolving fund loan, general obligation bonds and utility revenue bonds.

“As we review the terms, it became quite clear to us that the SRF loan is the best source of funding for that project,” Rupp said.

An SRF loan with a 20-year term, is expected to cost $30,260,000, including financing.

The annual payment is estimated at $1,894,312.

Anticipated interest rate is about 2.02 with a .25 percent service fee for a total of 2.27 percent. The total interest paid will be $7,626,235.

There are no closing costs, and no interest is charged until the city withdraws funds.

The first draw is expected in March or April 2016, and the first principal and interest payment is due two years after the first draw.

The loan “establishes a dedicated source of revenue for repayment,” Rupp said.

The loan agreement confirms the city will implement rates and fees sufficient to repay the loan.

Commissioners also voted to authorize City Manager Toby Dougherty to execute a contract for $109,365, with Olsson Associates for services related to the Lincoln Draw flood control project.

The money will be paid out of the stormwater reserve fund.

Steve Walters, Hays public works stormwater specialist said the city negotiated with three firms.

“Olsson Associates is the low bid. The Army Corps (of Engineers) is comfortable with them. They have done work with them on similar projects,” Walters said.

The survey work is expected to cost $46,000 and geo-tech services $63,365.

The city has an obligation in 2015 to pay $75,000 for the project.

“This is over ($75,000), and that portion will go toward the 2016 obligation.”

Commissioner Henry Schwaller asked exactly what they will be doing, and what the city will “have when they are done.”

The survey will give a high level view of issues that may be unforeseen. The geotechnical aspect will look at the soil for its density or soil pressures, and see if the sites selected meet the requirements, Walters said.

The land survey likely will start in a week or two.

After that “we’ll have a better idea where the site is going and where the geotechnical is going,” Walters said.

Commissioners also voted to approve the release $25,000 from the city commission financial policy projects line in the budget for marketing the Hays Regional Airport.

Mayor Eber Phelps signed a proclamation designating October 2015 as physical therapy appreciation month.