Libby submits $5 million federal request to address water-treatment plant needs

City Administrator Sam told the Libby City Council the city has submitted a short-notice application for $5 million in federal funds through Representative Zinci’s office to pay for urgent work at the city’s water treatment plant.

"We actually ended up submitting for $5 million of federal funds through Representative Zinci's office," Sam said, citing eroding tanks and multiple valves that need replacement. He said the request was prepared quickly with help from Mr. Beach, who has been gathering letters of support.

Sam summarized recent building-permit activity while describing the rationale for the request: 18 permits totaling $7,171 so far this fiscal year, compared with 21 permits for $33,000 at the same point last year and 23 permits for over $12,000 the year before. He said improved infrastructure would reduce the long-term burden on the city’s operating budget.

Sam said the city has spent $829,643.38 on emergency repairs in the lower reservoir category B and is exploring potential reimbursements. He said Montana DEES is reviewing a request that could result in roughly $1 million to $1.5 million in state support, and that USDA negotiations over matching and reimbursement levels are still fluid; Sam said some earlier USDA figures had been in the range of approximately $440,000 to $490,000 in potential reimbursement under certain scenarios.

Mayor Taylor and staff said Mr. Beach finished much of the application and that letters of support were being collected; a kickoff meeting with Montana DEES was scheduled for the following Friday. No final awards or matching commitments were announced; Sam said the city would report more details as they become available.

Next steps: staff will follow up on state and USDA negotiations and update the council if and when formal awards or match requirements are confirmed.