The Laramie City Council approved a resolution Tuesday authorizing the city to submit an application to the Wyoming State Loan and Investment Board (SLIB) seeking a loan through the state revolving fund to rebuild or replace the Zone 1 tank (also called the low-level reservoir) on the City Springs property.

Councilor Vigil moved the resolution; Councilor O'Doherty seconded. Director Brooks Webb said the city plans to seek roughly $10.1 million to provide additional storage capacity and address structural deterioration at the low-level reservoir, which functions as a primary storage and distribution hub for most of Laramies water system. Webb said the reservoir's effective capacity has declined from its design due to condition issues and that the structure has been patched repeatedly since mid-century construction.

Staff advised the council the request would target a 20-year loan term under SLIBs low-interest loan program; staff mentioned the current large-loan incentive interest rate at about 0.5 percent. Webb said the city will repay the loan from water user fees and that staff will manage project timing to reduce pressure on existing utility rate plans. Councilors asked questions about whether the structure could be repaired instead of replaced; Webb said a full assessment would be possible once new storage is in place and the reservoir could be taken out of service for a thorough inspection.

The resolution passed on a roll-call vote of 8 yes, 0 no, 1 absent. Staff said an application would be submitted in advance of the SLIB deadline and that the board typically considers such applications in a subsequent meeting cycle.

Councilors emphasized the projects importance to water reliability; staff said without the Zone 1 tank the majority of the city could experience supply interruptions. The council gave staff authority to proceed with the application but did not commit final funding until loan terms and project scoping are finalized.