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State funding available for Tar Canyon project; USDA grant remains uncertain
Summary
Staff briefed the council on Tar Canyon water project funding: $5.5 million in state (DFCM) funds require two-year expenditure while a hoped-for $5 million USDA grant is delayed, forcing staff to reconsider project sequencing and use of state vs. federal dollars.
City staff updated the council on the Tar Canyon water project and described a funding sequence that had relied on both state and federal sources. The city has secured roughly $5.5 million in state DFCM funding that must be expended within two years; staff said the intent was to use those funds for pipeline work while a separate USDA rural-development grant would cover well-site costs.
Speaker 5 said the USDA award (~$5 million) that the city hoped to pair with state money is on hold, which complicates project sequencing. "The DFCM money there, 5 and a half million dollars, is independent of any federal money that we get," Speaker 5 said, and staff emphasized the need to decide which components to start with given the timing constraints on the state funds.
Councilors discussed options: proceed with state-funded work now (pipelines and preparatory items) or delay some components until federal funds are resolved. Staff said they will use state dollars where appropriate to avoid returning funds and will continue pursuing USDA and other grant opportunities. Members noted related operational considerations, including how additional water deliveries will affect sewer flows and sewer-treatment costs.
