ELLY GRIMM
• Leader & Times
Multiple infrastructure projects will be up for discussion at this evening’s Liberal City Commission meeting starting at 5:30. This evening’s meeting will be in the commission chambers at the Liberal Recreation Center at 950 S. Grant Ave.
Up first for the commission will be discussion of a real estate purchase proposal involving water rights.
“Discussions have been held with Swalar LLC in regards to the potential sale of 363.52 acres of surface and two accompanying water rights. The water rights are No. 454, dated Oct. 29, 1948, and No. 27,277 dated Aug. 27, 1976,” the agenda information noted. “The water acre feet totals 702, with the Division of Water Resources requiring a reduction to 89.1 percent upon converting agricultural use to municipal use for a net of municipal use of 625 acre feet. The sellers have priced the real estate in an amount of $1,050,000 for both surface and water rights. Commission discussion included the exploration of purchasing the water rights with the surface potentially being sold to a third party and making installments for the purchase of the water rights. Swalar LLC has indicated they are willing to sell the surface and water separately while both sales would need to occur. They are not inclined to sell the separated real estate without both surface and water having been placed under contracts for sale. Therefore, Swalar LLC has recently negotiated a contingent agreement to sell the surface rights to a third party for $1,200/acre or $436,224. This leaves the balance to the City of $613,776 for the purchase of 702 acre feet of water rights. The City of Liberal would assume the duties and costs of contracts and deeds for separating the water from surface rights with the surface rights conveyed to the third-party buyer.”
And the discussions did not end there, the agenda information noted.
“The water rights would retain an easement on the 363.52 acres of surface. Swalar LLC has offered to the City of Liberal an initial sale closing installment for the water rights of $350,000 with the balance due in July of 2027,” the agenda information noted. “Swalar LLC has remained open to a combined surface and water rights sale to the City but do not desire payment in full beyond July of 2027. City staff recommends the commission review all attached documents and give a directive on how they wish to move forward with the purchase of the subject water rights in an amount not to exceed $615,000. Phase I and II Environmental Assessments would need to be completed prior to purchase. Sellers are asking for $350,000 at closing with potential funding from the Water Equipment Reserve, which has a current cash balance of $2,310,706. The remaining balance of the water rights purchase is proposed to come from the actual Water Fund in 2027, where proper budget authority could be written in the new year.”
Up next for discussion will be the Revenue Neutral Rate.
“The City of Liberal was notified by Seward County in June 2026 the 2027 Budget Revenue Neutral Rate was 47.139 mills,” the agenda information noted. “Through the 2027 budget discussions, we anticipate our budget will include up to 53.392 mills. Resolution No. 2459 was adopted on July 14, 2026 with our intent to levy a property tax in excess of the Revenue Neutral Rate. The Seward County Clerk was notified of our intent July 15. The 2027 Notice of Hearing to Exceed Revenue Neutral Rate was published in the Leader & Times Aug. 13. The 2026 Budget included 50.367 mills (final amount of 51.392 mills based on valuations) with a total tax levy of $8,131,454. The 2027 Budget includes an estimate of up to 53.392 mills with a max tax levy of $9,270,919. Due to the increase in 2027 valuations over that of 2026, an additional $1,139,465 of property tax dollars would be generated at the 53.392 mill rate. The quantity of estimated 2027 mills is subject to change, dependent upon the final assessed valuation in November 2026. Staff anticipates, through final budget talks, the city should be able to land between last year’s final number of mills and the increased proposal of 53.392.”
Also up for discussion will be the water park design-build agreement with Hutton.
“For the Hutton Design-Build Agreements for the City Water Park Project, the breakdown is as follows: the Base Contract Agreement; Insurance and Bonds; the Guaranteed Maximum Price (GMP) Amendment (which will not be incorporated into the contract until the time of setting the GMP, which will come after the design and bidding process is complete); and the Owner’s Program, which will be used to outline the city’s initial intention for the project. Legal counsel has reviewed all documents and given recommendations prior to the publication of the agenda. City staff recommend the approval of the design-build agreements with Hutton for the water park project.”
The commission will also be asked to approve work orders with PEC for a community dog park and parking lot surveys for Third Street and a change order for a water infrastructure project being done with the Middlecreek Corporation.
To conclude the meeting’s new business, the commission will be asked to approve a Temporary Event Permit for United Way.
“Seward County United Way has requested a Temporary Event Permit to sell and serve liquor during their Oktoberfest fundraising event on Lincoln Ave. between Second Street and Third Street and on Third Street from Lincoln Ave. east to the alleyway,” the agenda information noted. “The event will take place Saturday, Oct. 10, with road closures beginning at 12 p.m. The fundraiser will include vendor booths, food and beverage trucks, local businesses/agencies, live music, and family activities. The United Way has requested to sell liquor during the event and will be responsible for obtaining their state and local permits upon approval. City staff recommends the approval of Ordinance No. 4658 to issue a Temporary Event Permit to the Seward County United Way to allow liquor sales and consumption during their Oktoberfest fundraising event in Downtown Liberal.”
