Design contractors outline wastewater treatment expansion timeline, $120M project estimate and mixed funding options
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Summary
Contractors and the city outlined a design schedule for a wastewater treatment plant expansion, said early‑design steps are underway, and presented a funding plan that will likely require a combination of state/federal low‑interest loans, possible WIFIA, SRF rounds, and project appropriations.
Contractors and city staff presented an overview of the wastewater treatment plant expansion project, why capacity is needed and the schedule for design and construction. Crowder Construction and design partners described the current status of early engineering work, flow trends, regulatory triggers and a funding approach that will likely combine low‑cost loans, possible federal WIFIA financing, state revolving funds and search for appropriations or grant dollars.
Why it matters: Council heard that planned and permitted growth plus committed flows put the plant near capacity thresholds used by regulators; the city has committed early‑start engineering to refine flow projections and scope, and staff said it will need financing in phases. The immediate next budgetary ask is design funding: staff said an additional $10.9 million would be needed to continue design work through the summer, with a larger construction funding need forecast for 2027 when major construction would begin.
Project scope and timeline - Need and triggers: Contractors explained that regulatory guidance requires an evaluation when permitted capacity reaches 80 percent and permits for expansion must be in place at 90 percent; historical average flows are rising, and current committed/paper flows move the system toward that 80–90 percent range. - Early engineering contract and steps: The city entered an early‑start contract in December for preliminary engineering, sampling, condition assessment and flow projections. Contractors said detailed design would take roughly 18–24 months once fully funded, followed by approximately three years of construction; if design begins this summer construction completion would be expected about 2030. - Cash‑flow and near‑term ask: Contractors outlined cash‑flow phases: an early contract (about $600,000) is complete through June; an additional approximately $10.9 million would be needed in July to continue detailed design, with a larger construction tranche (roughly $108 million in the contractor’s slide) anticipated in early 2027 to support construction start.
Funding options discussed - State Revolving Fund (SRF): low‑interest state loans with potential principal forgiveness (but large principal‑forgiveness awards are unlikely for a single project; SRF maximum per round figures were noted and priority scoring topics discussed). Maximum single‑round SRF awards and scoring priorities mean the project may need several rounds or a blended approach. - WIFIA and USDA: WIFIA (EPA) can fund part of the project (up to 49 percent in some programs) and USDA guaranteed loans could be an option for some components; interest rates and coverage requirements vary. - Grants and direct appropriations: Contractors and staff encouraged pursuing federal/state appropriations and grants (Golden Leaf and other state grants were mentioned as smaller supplementary avenues) and recommended advancing the project to shovel‑ready status to improve chances of large appropriations.
Council reactions and next steps: Council members expressed support for advancing designs, emphasized seeking grants and asked for continued regular reporting on costs, schedule and procurement impacts. Staff will pursue funding options and return with specific financing and grant‑application plans.
Ending: Contractors emphasized that moving design ahead will improve the city’s ability to request targeted appropriations and to structure a financing package; staff recommended preparing for a phased funding plan that blends low‑interest loans, targeted grants and bond financing as needed.
