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Sunnyside flags major water and sewer repairs, eyes grants and loans to cover costs
Summary
City staff told council that well rehabs, a planned biogas project and a major lift‑station repair will require capital funding. Officials said FAA airport funds, state revolving funds and low‑interest loans are possible sources and that staff will pursue grants and lobbyist assistance.
City staff told the council they expect significant capital needs in utilities in 2026, including well rehabilitation, a biogas project at the wastewater plant and a potentially large lift‑station repair near Exit 67.
On the water side, staff said increases to the water fund appropriation reflect a rate adjustment and the need to pursue well rehab work and to maintain enterprise fund reserves. Staff recommended holding a 45‑day operating reserve for enterprise funds and moving any excess into designated capital reserves.
For sewer, staff described a proposed repair for the Exit 67 lift station (an estimated $1.9 million project) and said the biogas system must be rehabilitated but is currently delayed for parts. Officials said they have discussed low‑interest loans and grants and are working with a lobbyist (Capital Path) to pursue funding for headworks replacement and a disinfection system.
The airport was also discussed: staff said the FAA provides an annual entitlement (noted on the record as $150,000) that can be banked for multi‑year capital projects; councilors emphasized federal audit requirements on any projects that use FAA funds.
Staff said they will continue pursuing state revolving funds and grant opportunities and will present any loan/grant proposals to the council for approval before applying. The city also noted the sewer revenue bond and debt service together total roughly $2.3 million annually, which constrains borrowing capacity.
