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Council reallocates waterline-looping funds to replace service lines as city targets water loss
Summary
Murphy’s City Council voted to reallocate funds from an earlier waterline looping project and other utility budgets to prioritize replacement of private service lines and targeted water/sanitary repairs after staff concluded service-line leaks are the primary driver of water loss.
The City Council unanimously approved a resolution on May 20 to reallocate existing capital and utility funds toward strategic water and sanitary projects, including a focused program to replace residential water service lines identified as a leading cause of system water loss.
City staff described several funding sources to be repurposed, including unspent 2018 certificate of obligation funds, SSOI rehabilitation funds and budgeted utility funds. Staff said the waterline looping project, previously budgeted at about $4.9 million, will be paused and its funding redirected toward service-line replacement and other higher-priority water distribution projects.
"We've taken that project as far as we can take it right now," a city staff presenter said, summarizing the shift in priority. Staff told council that investigations completed over recent years indicate the majority of the city's apparent water loss is likely occurring in private service lines and that targeted replacement of those lines, along with water main and sanitary segments on Oak Bluff, Oak Creek, Walnut and Skyline, offers a higher return on investment for loss reduction.
Councilmembers supported reallocating the funds and described the move as stewardship of limited resources. The council voted to approve a budget amendment and reallocation; staff said they will bring a formal budget amendment forward reflecting the revised project list and schedule.
Staff identified the water service-line replacement as a FY2026 priority and said the work will be carried out strategically across identified neighborhoods. The resolution passed unanimously.
