Davids Requests $41 Million Savings for Kansas Water Contracts

Today, Representative Sharice Davids announced she requested a simple language change to this year’s annual water resource bill to save the State of Kansas more than $41 million. The specific request, made in the 2024 Water Resources Development Act (WRDA), changes how the interest is calculated on two of Kansas’ water storage contracts with the federal government. Governor Laura Kelly and the Kansas Water Office previously advocated for Davids to make this request.

“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,” said Davids. “With the precedent of a similar amendment being accepted for El Dorado Lake in 2022, I am optimistic that history will repeat itself this year, saving Kansas $41 million. I am proud to join Governor Kelly and Kansas’ Water Office in ensuring responsible use of taxpayer dollars.”

Currently, the State of Kansas leases water from the federal government for storage use, but the interest payments on those loans are calculated using compound interest, which makes debt grow faster. Davids’ request would change the interest rate calculation for two water supply storage contracts — Milford and Perry Lakes — to simple interest, which is computed annually based on the balance at the start of the period. This request would save Kansas more than $41 million in total interest payments. An identical request was granted in the 2022 WRDA for Kansas’ contract of El Dorado Lake.

“Lowering the interest rates on these debts for Milford and Perry Lakes would save Kansas taxpayers more than $41 million and benefit the communities and business depending on these reservoirs,” said KansasGovernor Laura Kelly. “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. I commend Representative Davids for supporting this request.”

“Kansans stand to benefit tremendously from the lower interest rates on these future use storage contract debts for Milford and Perry Lakes, saving millions of taxpayer dollars while further securing a much-needed long-term water supply,” said Connie Owen, Director, Kansas Water Office. “The Kansas Water Office appreciates Rep. Davids’ continued advocacy for Kansas through this WRDA request which would put our state’s reservoir water supply on solid footing for years to come.”

This request would provide financial relief not only for the State, but also for municipalities, industries, businesses, and water supply districts that utilize this water storage currently or in the future. Paying off this debt secures a reliable and more affordable water supply for residents and businesses for years to come, which is especially important as we face continued drought and extreme weather. Entities within Kansas’ Third District with current contracts for water supply storage at Milford and Perry Lakes include the Cities of Olathe, Bonner Springs, DeSoto, as well as WaterOne and Evergy.

Changing the method of calculating interest charges from compound to simple ensures the borrower is not paying interest on top of interest. WRDA is an important piece of legislation that is traditionally passed every two years to authorize U.S. Army Corps of Engineers activities for flood control, navigation, and ecosystem restoration.