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City will plan and design drinking water system improvements

JEFFERSON CITY, MO, JULY 10, 2024 - The Missouri Department of Natural Resources has awarded a $253,000 interest-free loan to the city of Kahoka for planning and design work related to the city’s ongoing drinking water improvement project.

These funds will provide vital interim financing to cover early engineering and administrative costs while the district works with the department to secure a larger funding package for the project. The larger construction project is expected to cost $2.5 million and should start in 2025.

The early planning phases of infrastructure projects often represent a significant financial burden for cash-limited communities with water and wastewater needs. The Planning and Design Loan Program’s goal is to provide a cost-effective alternative to expensive private financing that allows communities to move ahead on vital infrastructure projects. These loans bear no interest and come with only a five-year term. The funding provided by the department is estimated to save the city’s ratepayers approximately $35,600 in interest over the loan’s five-year term.

“We are proud to offer Missouri communities like Kahoka funding assistance vehicles that can help them undertake water and wastewater improvement projects,” said Dru Buntin, director of the Missouri Department of Natural Resources. “We can tailor assistance programs for qualified cities of all sizes so they can improve their treatment systems. This helps protect public and environmental health, and improves the quality of life for Missourians.”

The department’s Drinking Water State Revolving Fund finances improvements to water treatment plants, distribution systems, water storage and supply facilities, along with interconnection or consolidation projects. Communities that borrow from the fund benefit from the below-market interest rate and from assistance provided throughout their project from a project manager.

The department’s Financial Assistance Center is committed to working with communities to assist with water and wastewater infrastructure improvement projects. This project will be funded wholly or in part with monies received from the U. S. Environmental Protection Agency.

For more information on wastewater and drinking water funding opportunities, visit

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