Sandpoint council sends $130 million wastewater bond to November ballot

The Sandpoint City Council voted 7-0 on Aug. 20 to place a proposed $130 million revenue bond for wastewater treatment plant improvements on the Nov. 2025 ballot.

Councilors cited the plant’s age, regulatory risk and recent engineering work in choosing the full-bond option over a smaller phased approach. Mayor Jeremy Grimm presided. Public works and engineering staff presented two options: a full rebuild estimated at $130 million, and a smaller, higher‑risk phase 1 option estimated at about $80.3 million.

The council’s decision followed an update from Keller & Associates and a survey contractor, which found strong community awareness of the plant’s condition and roughly similar public support for the $80 million and $130 million options when respondents were told the city would pursue grants and other outside funding. Amy Holly of Portman Square told the council the survey reached a statistically significant sample and that support grew when respondents knew the city would pursue grant money.

Ben McGrann, representing the Avril Edgewater hotel project, urged the council to grandfather projects with permits or phase in new impact fees, saying proposed fee increases could make projects infeasible. He told the council: “At the proposed $7,703 per room, a 105% increase, this project is simply unviable.”

Engineers said the full project replaces virtually all treatment-plant infrastructure and carries a large contingency because design work and value‑engineering are still preliminary. Keller & Associates noted the city had secured a high ranking with the Idaho Department of Environmental Quality for a loan package that includes about $3 million in principal forgiveness but stressed the $38 million figure is a loan, not direct grant funding.

Council debate focused on timing, costs and the risk of doing the work in phases. Supporters argued a single comprehensive bond reduces long‑term cost risk and avoids repeated returns to voters; others said a phased approach might be more palatable to voters but could increase cost and regulatory risk if key components fail while future funding is sought.

The ordinance calling the election and authorizing up to $130,000,000 in wastewater revenue bonds passed its readings under suspension of the rules and will be sent to the Bonner County clerk for placement on the Nov. ballot. Staff and consultants told the council they would continue aggressive grant and low‑interest loan pursuit to reduce any borrowing need.

The council directed staff to move forward with the ballot language for the $130 million authorization and to continue outreach and education ahead of the election.