Danville utilities staff presented a prioritized list of water and sewer capital projects and regulatory work that staff said are important to address system capacity and compliance.

Staff described several large projects under active evaluation: a phase‑2 upgrade to the wastewater treatment plant (initial construction estimates above $14 million), a new Spears Creek force main (construction estimate in the multi‑million‑dollar range, roughly $7 million), and a program of sewer improvements tied to federal and state grant and loan programs. Staff said the city is pursuing State Revolving Fund (SRF) loans, EPA grant funds and other low‑interest financing to reduce the local customer impact of large projects.

Utilities staff explained the plant sees high peak flows during strong rain events caused largely by inflow & infiltration (I&I) in older trunk lines. They said replacing or upsizing trunk lines in the Clarks Run corridor and targeted rehabilitation of pump stations can reduce peak flows at the treatment plant, improving regulatory standing and creating capacity for future development. Staff reported they expect work on a Twinbrook culvert replacement and nearby sub‑basin improvements to be bid and constructed in upcoming months.

A separate Junction City / Perryville sewer package — funded in part by county ARPA money — includes five pump stations and a small treatment plant and is in the design phase, staff said. Utilities staff also described lead‑service‑line inventory and replacement planning tied to a 10‑year regulatory program; the city is conducting inventory and assessment work now and expects the replacement program to follow once the assessment is complete.

Staff emphasized that some projects have secured or are being pursued for grant/loan support and that the city intends to prioritize projects that reduce I&I and improve plant performance. Staff also noted that federal and state regulators are more active after recent wet weather months and that the city’s proactive planning is intended to limit enforcement risk.

Utilities staff said they are completing a cost‑of‑service study to inform water and sewer rates and to plan future debt service. They warned that large projects will require either grant/loan financing or multi‑year rate plans to avoid sudden customer rate spikes.