Kearney to Put $62.5 Million Wastewater Bond Issue to Voters

In a decision made during the Board of Aldermen meeting on January 20, 2026, Kearney city officials approved an ordinance to place a $62.5 million revenue bond question on the upcoming April 7 ballot.

The move follows an extensive utility rate study and is designed to secure funding for vital wastewater projects, aiming to save residents more than $30 million over the next three decades—over $1 million each year—by enabling the city to utilize the State Revolving Fund (SRF) loan program.

On Election Day, voters in Kearney will encounter the following ballot language: “Shall the City of Kearney, Missouri, issue its sewerage system revenue bonds in an amount not to exceed $62,500,000 to acquire, construct, extend, renovate, improve, and equip its sewerage system, including, but not limited to, an expansion of the City’s wastewater treatment plant, the replacement of wastewater lines, and other improvements to the wastewater system, including improvements to the wastewater collection, conveyance, and treatment system, the costs and maintenance of said sewerage system and the principal of and interest on said sewerage system revenue bonds to be payable solely from the revenues derived from the operation of its sewerage system, including all future improvements and extensions thereto?”

Voters will choose between YES and NO.

A YES vote will allow the city to access SRF financing, which offers a subsidized interest rate for wastewater system improvements. A NO vote would mean relying on traditional financing methods with higher interest rates. City leaders stress that upgrades to the wastewater treatment plant and related infrastructure are essential to maintain reliable services for Kearney residents. The city intends to borrow funds and repay them over time, distributing the cost across future generations who will benefit from the improved system.

Regardless of the vote outcome, the city will proceed with the necessary improvements to the wastewater system. These projects are critical for maintaining reliable service, safeguarding public health, complying with regulatory requirements, minimizing the risk of system failures, reducing the likelihood of enforcement actions, and supporting future growth. Approval of the revenue bonds is required for the city to participate in the SRF loan program, which enables significant long-term savings for residents. The city previously used SRF funding for its water connection to Kansas City in 2001.

City officials clarify that the proposed revenue bonds are not a new tax; repayment will come exclusively from sewer user fees, as the wastewater system operates as an enterprise fund. While infrastructure upgrades will require rate adjustments, passage of the bond issue will keep rates as low as possible. If the measure does not pass, residents face substantially higher rate increases due to more than $31 million in additional interest costs over the life of the loan.

KPGZ News – Brian Watts contributed to this story.