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Council reallocates funds to replace water service lines, pauses larger looping project to reduce water loss
Summary
Council approved reallocating multiple utility and certificate‑of‑obligation funds to prioritize water service line replacements after staff analysis pointed to service-line leaks as the main driver of water loss; the larger waterline looping project will be paused.
The Murphy City Council on May 20 approved a resolution to reallocate previously budgeted utility and 2018 certificate of obligation funds to fund prioritized water distribution work, including a program to replace customer service lines.
City staff explained the redeployment follows an internal review and prior budget discussions. Staff said the city earlier placed several projects, including a waterline looping project, in the FY25 plan but that emerging evidence points to customer service-line leaks — particularly older copper service lines — as the primary driver of elevated system water loss. Staff recommended reprioritizing funds to replace service lines with poly (plastic) pipe and to perform targeted water and sanitary sewer rehabilitation in specified neighborhoods.
During the presentation staff identified several funding sources proposed for reallocation: an unspent portion of the 2018 certificate of obligation utility construction fund, an SSOI (sanitary sewer overflow/inflow) rehabilitation fund balance (reported in the presentation as approximately $675,000), and previously budgeted waterline-looping funds (figures discussed included roughly $2.9 million and a combined total figure referenced in presentation slides). Staff said the largest single reallocation asked was for the waterline looping project (staff referenced a $4.9 million figure during discussion), which would be paused so those dollars can be applied to service-line replacement and higher-priority repairs.
Councilmembers expressed support for focusing on areas that will most reduce water loss. One councilmember called the shift “good stewardship” and another said recent investigations pointed to service lines as the likely culprit and praised the staff plan to address them.
The council adopted the resolution by voice vote; staff said a formal budget amendment would be brought forward in the coming weeks to implement the reallocations in FY26.
Ending: Staff will prepare the proposed budget amendment and a multi-year work plan for service-line replacement and targeted water/sewer rehabilitation and bring it back to council for approval.
