How Sharice Davids' proposed federal water storage change could save Kansas $41 million

Jason Alatidd, Topeka Capital-Journal
·2 min read
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A potential change to federal water law involving two Kansas lakes and how interest is calculated could save the state's taxpayers more than $41 million.

U.S. Rep. Sharice Davids, D-Kansas, announced Thursday that she had requested the change after hearing from Gov. Laura Kelly and the Kansas Water Office.

Kansas leases water from the federal government for storage use, but payments are typically based on compound interest. Davids' proposal would change that to simple interest for the Milford and Perry contracts. That debt relief would save Kansas more than $41 million in total interest payments.

A proposed change to how the federal government calculates interest on the state's water storage contracts at Milford Lake and Perry Lake, seen here, could save Kansas taxpayers more than $41 million.
A proposed change to how the federal government calculates interest on the state's water storage contracts at Milford Lake and Perry Lake, seen here, could save Kansas taxpayers more than $41 million.

"My request to this year's water resources bill would provide economic relief for our state and secure a more dependable and affordable water supply, a lifeline for communities across Kansas in the face of increasingly unpredictable weather patterns," Davids said in a statement.

The change would be part of federal legislation on the U.S. Army Corps of Engineers that is typically passed every two years.

Two years ago, a similar action was taken for El Dorado's water storage contract. Davids said that precedent makes her "optimistic" about the prospects for Milford and Perry lakes.

The water supply contracts for the two lakes date to the 1970s. The Perry Lake contract has a 3.046% compounding interest rate while Milford Lake's is 2.632%.

Kelly said in a statement that adjusting the interest rates will "benefit the communities and businesses depending on these reservoirs."

The Kansas Water Office has water storage contracts for the 14 federal reservoirs, and the office then contracts with municipal and industrial customers for long-term water supply. Several cities — including Topeka — businesses and other entities use one of those two lakes for water storage.

"Paying off this debt secures a reliable, more affordable water supply for years to come, which is crucial as we continue to address Kansas' water crisis," Kelly said.

Jason Alatidd is a Statehouse reporter for the Topeka Capital-Journal. He can be reached by email at jalatidd@gannett.com. Follow him on X @Jason_Alatidd.

This article originally appeared on Topeka Capital-Journal: How Kansas taxpayers could save millions in interest on water storage