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Mayor updates commission on Red River Valley water-supply project; state and federal funding discussed
Summary
City officials briefed the commission on the Red River Valley Water Supply Project, describing current construction, committed users, financing through state commitments and Bank of North Dakota loans, and a possible state offer to increase funding and accelerate the schedule.
The commission heard an extended briefing on the Red River Valley Water Supply Project, a multi-jurisdictional effort to provide long-term and emergency water supply across eastern North Dakota.
A city official described the present design as a roughly 125-mile pipeline routed from the McCloskey Canal with a 72-inch diameter pipe buried about seven feet and multiple pump and treatment stations. The project is intended to serve a broad area of eastern North Dakota and was characterized in the briefing as covering roughly half the state's population when complete.
Construction status and participants: the presenter said several construction contracts have been awarded (about $270 million in contract value through 2024) and that roughly 12 to 20 miles of pipeline were complete at the time of the briefing. The project team is designing additional segments with an overall 10-year build horizon; the presenter said a 10-year schedule remains the plan but noted potential to accelerate construction if additional funding were available.
Sign-ups and capacity: the project currently has 165 cubic-feet-per-second (cfs) capacity allocated and the presenter said 138 cfs had been committed by local users and municipalities. Cities listed as committed or interested included Fargo, Grand Forks, Valley City, Carrington, Hillsboro, Mayville, Cooperstown, Washburn, Wahpeton and several counties.
Financing and recent developments: the presenter said the state provided about $953 million in commitments and the 2023—25 biennium included $180 million for the project. The City has capitalized about $60 million through the Bank of North Dakota at an interest rate the speaker cited as 2%. The presenter said the state asked whether the project wanted more money and suggested a possible $550 million offer to accelerate construction; combined with federal funds that could materially reduce local costs by lowering interest expense through faster build-out.
What's next: staff will continue design and contracting, pursue state and federal funding, and work with smaller systems to finalize user agreements. The presenter urged moving forward on construction to retain water-right priorities and to reduce overall interest costs by accelerating build timing if additional funding is available.
