Commissioners Split on $39 Million Bond Package Tied to EPA Consent Decree; Staff Warn of Possible Penalties if Projects Stall
The Unified Government (UG) of Wyandotte County and Kansas City, Kansas, may soon face problems with federal regulators after commissioners failed to advance a $39.4 million bond package needed to stay on track with the city’s federally mandated sewer improvement plan.
The proposal, listed as Agenda Item 4.4 at the November 3 Economic Development and Finance Standing Committee meeting, would have amended the UG’s 2025–2030 Capital Improvement Program to authorize $34.6 million for sanitary sewer projects and $4.9 million for a stormwater project. According to the UG, these projects are required under the Consent Decree between the UG, the U.S. Environmental Protection Agency, and the Department of Justice.
The Consent Decree, finalized in 2020, is a legally binding agreement that compels Kansas City, Kansas, to overhaul its aging sewer system to reduce combined sewer overflows that pollute local waterways. Missing federal deadlines can result in steep fines or enforcement actions.
Chief Financial Officer Dr. Shelly Kneuvean told commissioners that the proposed bonds are already accounted for in the UG’s financial plan and would be paid through sewer user fees, not property taxes. Customers pay these fees as part of their monthly BPU bill. “This general obligation debt has been built into the rate model and is affordable with the 2026 four percent rate increase approved by the Mayor and Commission,” Kneuvean said.
The committee voted 3-1 on the measure, with Commissioner Chuck Stites casting the only “No” vote, preventing the resolution from advancing to the full commission. The bond authorization required unanimous approval to move forward from committee.
Stites said he opposed issuing new debt, even for sewer projects funded through user fees, citing concerns about the UG’s overall debt load. “I’m not for issuing more debt,” Stites said. “I mean, we’re trying to get out of debt. And here we are talking about adding another darn near 40 million dollars to debt.”
He also argued that the UG could have paid cash for the projects using discretionary dollars in the general fund, saying those funds “could have easily covered this amount.” UG financial staff disagreed, noting that sewer and stormwater projects are funded through a separate enterprise fund supported by user fees, not through general fund spending.
Several commissioners acknowledged Stites’ fiscal concerns but emphasized the need to keep the process moving. Committee Chair Tom Burroughs and Commissioner Bill Burns supported advancing the measure to the full commission for further discussion, noting that the projects are legally required and time-sensitive. “We have a legal obligation under the Consent Decree,” Burroughs said. “Those fines are quite substantial.”
A second motion was made to send the item to the full commission without a recommendation, but that vote also failed after Stites voted “No” again, leaving the measure stalled in committee.
Kneuvean and Environmental Services Director Jeff Miles both warned that further delay could jeopardize compliance with federal requirements. “We are under a Consent Decree,” Miles said. “This allows us to keep making progress and avoid default.”
The failed votes mean the issue cannot return to committee for at least 30 days. It had originally been scheduled for final approval at the Nov. 20 Commission meeting, though that timeline will likely change.
Without authorization to issue the bonds, staff said the UG risks falling out of compliance with the federal order, which could trigger penalties and slow needed infrastructure improvements across the community.
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