Council approves SRF authorizing resolution for reduced‑scope wastewater project

The Hot Springs City Council approved an SRF (State Revolving Fund) authorizing resolution to pursue funding for a reduced-scope Phase 1 wastewater project, which officials said reduces the immediate funding ask to $9,166,000 from an earlier $14 million estimate. Jennifer Seitzna (Black Hills Council of Local Governments) told the council the reduced scope focuses phase 1 on screening, grit removal and administrative/lab building updates, while pipeline replacement and lagoon aeration would be part of a later phase.

Jim Jones of AE2S, the city's engineering consultant, explained alternatives evaluated in the amended facility plan. He said using lagoon-based treatment for later phases raises upfront costs but shows lifecycle operational savings over 20–30 years compared with in‑town biological treatment. He also said the project currently assumes a 4% interest rate over 30 years and anticipates surcharge bond revenue pledged for repayment, with the potential for grant/loan combinations depending on awards.

Council and staff discussed the roughly 5-mile transmission line (about 14,000 feet) that may require replacing with sewer-rated pipe; staff said pipeline replacement will likely be part of phase 2 and will require environmental and cultural resource reviews. Council approved Resolution 2026-9 by voice vote to proceed with the SRF authorization.

Next steps: The city will proceed with SRF application steps for phase 1; pipeline and phase 2 work will return for separate environmental review, hearings and potential funding actions.