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Sandpoint authorizes $60 million SRF loan application for wastewater plant reconstruction
Summary
The council authorized submitting a construction funding application to the Idaho Department of Environmental Quality seeking up to $60 million for the wastewater treatment plant reconstruction and adopted the associated resolution; staff said additional funding sources and grant pursuit will continue.
The Sandpoint City Council voted March 18 to authorize submission of a construction funding application to the Idaho Department of Environmental Quality’s State Revolving Fund seeking up to $60 million for the city’s wastewater treatment plant reconstruction.
Public Works Director Holly Ellis told the council the city previously submitted a letter of interest and passed a bond for the project in November 2025; the SRF request is the first major funding sequence for the reconstruction. "We are asking to request up to $60 million and that would represent the first...phase of the project," Ellis said. She said DEQ has about $38 million available in the current cycle and the city will seek additional grant and loan sources to cover estimated needs beyond the SRF allocation.
Ellis said the city is coordinating with its congressional delegation and expects the DEQ director to visit Sandpoint May 6 to review plant needs and discuss funding and regulatory matters. Council members asked detailed questions about principal forgiveness; Ellis said DEQ previously offered $3.8 million in principal forgiveness to the city in an earlier round but warned federal and state funding streams are currently constrained.
The council voted to adopt the resolution authorizing the SRF application by roll call (all councilors present voted yes). The motion was moved by Councilmember Dette and seconded by Councilmember Joel Espiro, and the resolution passed.
The city’s next steps include inviting the project engineer (Keller & Associates) to present preliminary design and phasing, continuing to pursue additional grants and loan programs (including USDA rural development and other options), and meeting with DEQ leadership in May. Officials said they will outline strategies to pursue roughly $70 million in additional funding beyond the SRF request.
Next steps: staff will submit the SRF application, schedule the engineer’s briefing for the next council meeting, and continue outreach to federal and state funding partners.
