Cities tell lawmakers North Dakota faces $1.7 billion in unfunded wastewater projects; officials flag affordability and reserves

Representatives of municipal governments and water utilities told the Water Topics Overview Committee that wastewater infrastructure needs in North Dakota are substantial and largely unfunded.

Matt Gardner, executive director of the North Dakota League of Cities, said the Department of Environmental Quality's intended-use plan lists 292 wastewater projects totaling about $1,700,000,000 in project costs. A targeted survey of 11 cities with populations above 5,000 (covering about 382,000 residents) found $203,000,000 recognized as deferred maintenance and $435,000,000 in future capital improvements; combined reserves in those cities totaled roughly $58,200,000.

Gardner said the data underscore the pressure on smaller communities and on utility rates if major projects move forward. "We have an aging system out there when it comes to wastewater," he said. "One of the numbers in our survey was 1,700,000,000 in total project costs from DEQ's intended-use plan." He urged the committee to consider statewide financing mechanisms because many communities currently rely heavily on local rates and bonds to finance upgrades.

Eric Volk of North Dakota Rural Water expressed concerns about changes to the rural water bucket in DWR funding and signaled interest in working with the legislature and commission on solutions. Committee members asked whether a dedicated cost-share or grant program for wastewater should be considered; officials said no single funding solution had been developed yet, and recommended further analysis of affordability, rate impacts and the feasibility of targeting state or federal funds.

This article is based on testimony and survey results presented by Matt Gardner (North Dakota League of Cities) and comments from Eric Volk (North Dakota Rural Water) during the Water Topics Overview Committee meeting.