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Sioux Falls seeks $32.8 million in state SRF funding for Water Reclamation Facility upgrades
Summary
The council authorized staff to apply for state water plan financing covering biosolids dewatering, gravity thickener rehabilitation, chemical feed and HVAC/roof improvements, with estimated construction costs of $32.76 million and expected SRF terms of roughly 3–3.5% over 20 years.
The Sioux Falls City Council on June 3 approved a resolution authorizing application for state financial assistance to fund the next series of projects at the Water Reclamation Facility, including a new biosolids dewatering facility, gravity thickener rehabilitation, chemical-feed improvements and campus HVAC/roof work. The resolution authorizes staff to file the funding request and designates a representative to certify payment requests.
City wastewater staff said the projects respond to aging equipment and future growth needs and are part of a master plan. Mark (last name not stated in the transcript), presenting for the utility, said the expected construction and design cost for the set of improvements is $32,761,000 and the typical State Revolving Fund (SRF) loan terms would be about 3 to 3.5 percent for a 20-year loan if approved.
The presentation said the city has tested temporary dewatering equipment and is ready to build a modern dewatering facility. The gravity thickeners on campus are roughly 40 years old and need mechanism replacement and concrete rehabilitation. The chemical-feed building requires structural and storage upgrades to mitigate regional material shortages. The presenter described a funding timeline: apply this month, bring bonding attorneys in Q4, advertise for bids in 2026 and begin construction if the state supports the request.
Councilors asked no substantive technical questions during the hearing; Councilor Sale commended Public Works staff for keeping the council informed of project planning. The resolution passed by unanimous vote.
If the state approves funding, city staff said they would return with financing and bidding steps; the presentation also indicated the city would seek to contract construction in 2026 and bring bond documents in the fourth quarter of the year.
