Hot Springs city leaders voted unanimously to authorize applications for state and federal funding to upgrade a failing wastewater treatment plant, but the decision followed an extended public hearing dominated by concern over whether treated effluent should continue to go to nearby irrigation ponds or be discharged to the Fall River.

City officials said the city’s existing facility, built in 1984, has deteriorated to the point that safety and regulatory risks are growing. “We’re here tonight to talk about replacing a wastewater treatment plant that’s 41 years old,” the mayor said during opening remarks, stressing worker safety and an expired discharge permit as primary drivers for action. Engineers who prepared the facility plan told the council they found structural deterioration, out-of-service equipment and hydrogen‑sulfide exposure that creates unsafe working conditions.

Engineers from AE2S recommended a moving bed biofilm reactor (MBBR) as the most practical, flexible treatment option. Jim Jones of AE2S said the MBBR was the lowest‑cost capital option that also provides flexibility to meet future nutrient and ammonia limits. “There’s a lot of backup and fail safes,” Jones said of the recommended mechanical plant design, adding that the current plant “will not meet permit limits day 1” when the state issues a reissued permit.

Jennifer Seatsma of the Black Hills Council of Local Governments outlined the funding approach and potential user impacts. Phase 1 of the project—the application the council approved to seek—would pursue up to $14,040,000. Seatsma said the overall project estimate is roughly $27 million and that the city intends to pursue the funding in two phases to maximize grant and principal‑forgiveness opportunities. Under a worst‑case scenario with no grant assistance the example impact cited was about $90 per household per month; for phase 1 alone, Seatsma said a surcharge of about $45.37 per household per month is the illustrative figure if no principal forgiveness is awarded. She noted the actual award package will determine final borrower obligations and the council would retain the right to decline funding if terms were unacceptable.

Plant staff and several residents described daily operational challenges and safety concerns. Jason, the wastewater plant foreman, described frequent maintenance and corrosive conditions from hydrogen sulfide, saying staff face regular hazards and that a catastrophic failure could have severe public‑health consequences.

Many residents from the Fall River corridor and downstream property owners opposed surface‑water discharge. Speakers cited the river’s cultural and recreational importance, the risk of emerging contaminants (including PFAS and microplastics), potential groundwater impacts, and the prospect of litigation if downstream users or environmental groups object. Gary Romy, whose land currently receives irrigated effluent under an existing arrangement, told the council his pivots and pipeline infrastructure have been maintained for decades and that he is willing to continue taking effluent under a renewed agreement.

Engineers and funding staff said environmental and design reviews are required parts of the state and federal funding process. Jones said the recommended design would be capable of meeting anticipated limits for BOD, TSS and ammonia, and Seatsma noted that Community Development Block Grant and SRF applications include environmental review steps and state agency engineering review before funds are awarded.

Council members repeatedly emphasized that the votes taken Wednesday authorize only submission of funding applications and do not obligate the city to accept a loan or construct the project. After the roll calls, which recorded unanimous approval of three funding‑application resolutions, the mayor said the council had heard the public and pledged to continue discussions with area stakeholders about discharge options and any necessary contract terms with landowners who accept effluent.

Next steps: the city will submit the SRF and CDBG applications and await the state’s funding decisions. If the city receives an award, the council will evaluate the package and decide whether to proceed to design and construction.