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Hill City wins $8 million for $9.8 million water plant; sewer relocation tied to state roundabout
Summary
Hill City Mayor Dave Lang described a $9.8 million water treatment project funded with roughly $8 million in grants and a $1.8 million low-interest loan; a state roundabout on Highways 169 and 200 forced a nearly $1 million sewer relocation and a city purchase of six acres to secure infrastructure and a snowmobile trail easement.
Mayor Dave Lang said Hill City’s largest current public-works project is a $9,800,000 water treatment plant, with about $8,000,000 covered by grants and the remaining roughly $1.8 million financed through a low-interest loan. "We did get 8,000,000 of that in grant," Lang said, adding the loan portion carries interest "right around 1%." The mayor warned the debt-service burden will push rates higher, noting the town expects about a 15% increase in water bills over the next couple of years.
The water project’s grant funding included federal (deed) sources and local advocacy: Lang said the county commissioner used trips to Washington, D.C., and discussions with state representatives to help secure support. The combination of grant aid and low-rate borrowing reduced the town’s upfront cost but left a substantial debt service obligation for a small customer base; Lang stressed the challenge of spreading nearly $2 million in debt across "say 200 customers."
Separately, a state-built roundabout at Highway 169 and Highway 200 required Hill City to relocate a sewer main. Lang said the relocation work was "just shy of 1,000,000 dollars" and that about $600,000 of that displacement cost was covered by grants. To remove future easement conflicts, the city purchased six northern acres of the adjacent privately owned parcel so the sewer main and a snowmobile trail are now on city-owned property. Lang noted the parcel includes Morrison Brook, a trout stream, and wetlands; owning the land reduces the potential for future disputes with the private owner over development or trail access.
The city is also preparing portions of that parcel as a recycling drop-off site. Lang said the city initially covered site costs and expects the county to bid fencing and take on long-term site oversight to avoid repeated dumping problems seen in previous unmonitored recycling attempts.
The projects are under way and tied to grant schedules and state construction timelines; Lang said the city will continue budget discussions to cover ongoing operating and debt-service costs.
