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Council approves $11.97M funding shift for South Central water/sewer project; Navy to be primary customer

Chesapeake City Council · January 13, 2026
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Summary

Council approved changing $11,966,159 in funding for the South Central Water and Sewer Transmission CIP from future revenue bonds to federal grant funding, including Defense Community Infrastructure Program funds estimated at $12 million and a state grant near $2 million; staff said connections by nearby homeowners will not be mandatory.

Chesapeake City Council unanimously approved a request to change the funding source for the South Central Water and Sewer Transmission Capital Improvement Project, moving $11,966,159 from planned revenue bonds to federal grant dollars.

City Manager (Mr. Price) and utilities staff described the project as long planned to serve the Northwest Annex and said the Department of Defense has provided grant support because the Navy is the primary beneficiary. Captain Geist (public utilities staff) told council the Defense Community Infrastructure Program is the source for approximately $12 million for the project and that the city also secured nearly $2 million in Commonwealth funding to help defray costs.

"The Navy is the primary customer," the City Manager said, and staff explained that federal support both reduces the utility-funded share and accelerates the project. Staff also told council that extending a main is not intended to force mandatory connections; homeowners adjacent to the new mains will be eligible for incentives but will not be required to connect.

Council members asked for clarification about where the grant money came from and how costs will be reestablished to the city; staff said remaining costs are expected to be recovered through user fees over time and that the grant and state funds will cover a significant portion of the project.

The motion to approve the funding change passed 9–0. Residents who spoke later during public comment (Linda Tindell) asked the council to remove a rural portion of West Road from the city's public utility franchise area to avoid mandatory hook-ups and liens; staff committed to follow up with written clarifications.

Next steps: staff will work with the utilities department and the Navy on project implementation, provide additional mapping and homeowner guidance about connection options, and incorporate the grant funding into the FY26 budget and capital plan.