Davenport seeks up to $4.7 million from Cass County flood-sales tax as state cost-share remains uncertain

Kurt Lizney, an engineer with Moore Engineering, told the Cass County Flood Sales Tax Committee on April 20 that the Davenport ring-dike project — long planned to remove the city from the FEMA flood plain — now faces sharply higher construction costs and will likely need more county funding unless the State Water Commission increases its share.

Lizney said previously approved funding for the project includes $2,083,000 from the State Water Commission, $1,425,000 from the county flood sales tax and about $460,000 from a local assessment district. “All costs have essentially doubled since 2018,” Lizney said, and based on revised estimates he told the committee, “we would anticipate needing approximately an additional 2.7 million from the flood sales tax committee.” He added a broader contingency range up to $4.7 million depending on final bids and state support.

Why it matters: removing Davenport from the FEMA flood plain would eliminate mandatory flood-insurance impacts and reduce repeated emergency response costs, advocates say. Lizney told the committee the town now sends roughly “about $400,000 per year in flood insurance premiums leaving the city,” an economic loss he said the project is intended to stop.

Background and delays: The project traces to a 2017 mapping that placed Davenport in the federal flood plain. That led the city and the Water Resource District to sign a joint powers agreement and create an assessment district. Conceptual plans were completed in 2020; the State Water Commission previously approved $2,083,600 and the county committed $1,425,000. Since then, Lizney said, FEMA model updates, new conditional letter-of-map-revision (CLOMR) requirements, long right-of-way negotiations with absentee landowners and protracted negotiations with BNSF railroad over six crossings increased complexity and schedule.

Lizney described technical work completed: a construction permit from the state, purchased wetland mitigation credits, and completed right-of-way acquisitions. “We’ve got all the wetland mitigation credits purchased. We’ve got the state construction permit. We’ve got all the right of way. We’ve got everything but the funding,” he said.

State cost-share and next steps: Lizney said the State Water Commission changed its economic model to exclude flood-insurance premium elimination as a quantifiable benefit in some cases, which affects benefit–cost calculations and how much state funding will be available. He said consultants will submit a request to the commission seeking an additional $2 million and that the commission meets in early June. The team plans to advertise and open bids before the commission decision, hold bids (standard 60 days, possibly 90) and then finalize the county ask once bids and any updated state commitment are known.

Local impacts and timeline: If bids and funding align as hoped, Lizney said, construction could begin in 2027 with earthwork and related installations completed that year. He said the water resource district will own the project property and that the assessment district would levy for future maintenance once bonds are repaid. Mayor Lotscher of Davenport is expected to present at the State Water Commission meeting to advocate for the project.

What’s next: Committee members tentatively scheduled a special meeting for June 15 to consider a specific county funding request after the State Water Commission’s June meeting. The committee did not take any formal funding action on Davenport at the April 20 meeting.