Sioux Falls council approves SRF applications for water connection and Southeast Basin sewer phase

The Sioux Falls City Council on Sept. 16 approved two resolutions authorizing staff to seek State Revolving Fund (SRF) financial assistance for major water and sewer projects.

Nick Bourns, principal engineer for City Water, said the first resolution supports an SRF grant/loan application and facility‑plan submittal for phase 2 of the city’s third connection to the Lewis and Clark Regional Water System. He said phase 1 is nearing completion and that if SRF grant funds are not awarded the city plans to proceed in 2026 funded through user fees. "This does allow us to continue our pursuit of the grant funding," Bourns said.

Chad Comas, representing Public Works, described the Southeast Basin sanitary sewer improvement project (Phase 1) and asked council support for an SRF application. Comas identified the Phase 1 cost included in the resolution as approximately $17,746,000 and estimated that the full multi‑phase project could total roughly $44–46 million. He told council staff expect to submit the facility plan in September 2025, pursue a loan ordinance in March, bid work in late spring 2026 pending right‑of‑way acquisition, and aim for project completion in 2027. Comas said anticipated interest rates are in the range of about 3.5% to 4%.

Councilors moved and seconded each resolution and approved both measures by recorded votes of 6‑0.

Both resolutions authorize staff to execute application documents and designate authorized representatives to sign payment requests; final loan terms and any loan ordinance would return to council later in the process.

The council’s votes allow staff to continue the planning and funding pursuit; construction timelines and final financing terms remain contingent on SRF board action and project acquisition processes.