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Sabula approves CDBG application and SRF package for $2.14M wastewater plant upgrade
Summary
Sabula’s council approved a resolution to submit a $500,000 CDBG application and proceed with an SRF loan package totaling $2,138,000 to replace aging equipment, switch to UV disinfection and add an emergency generator at the city wastewater treatment plant; completion is anticipated in 2027.
Sabula’s City Council on March 24 approved a resolution to submit a Community Development Block Grant (CDBG) application and move forward with an approved State Revolving Fund (SRF) loan package to fund improvements at the city wastewater treatment facility.
The project is estimated at $2,138,000, including construction, engineering and administrative fees. The city reports SRF support of $1,638,000 (which includes a $900,000 forgivable loan) and is requesting $500,000 in CDBG funds from the Iowa Economic Development Authority (IEDA). The CDBG application is due to IEDA by May 22, 2026, and the city anticipates completing the improvements in 2027.
The council’s action to approve Resolution #1388 to submit the CDBG application was moved by Councilor Mike O’Hara and seconded by Councilor Jeremy Diercks; the motion passed by unanimous vote.
City documents presented at the public hearing say the plant was built in 1965 with upgrades in 1981 and that multiple components are in poor condition, citing an inability to obtain replacement parts, absence of a backup generator, and a disinfection system that the city describes as “in poor condition.” The proposed work listed by the city includes rehabilitation of a campground lift station; replacement of grit chamber piping, pumps and valves; replacement of Sequencing Batch Reactor decanters and pump piping; replacement of a chlorine system with a UV disinfection system; blower-room ventilation upgrades; and installation of an emergency generator for standby power.
Amanda Dupont, grants coordinator with East Central Intergovernmental Association (ECIA), attended the meeting to review required paperwork for the grant and to answer council questions about submission and forms.
City records included an estimate that 63.03% of the federal funds (about $1,347,581) would benefit low- and moderate-income residents of Sabula. The city said the work will be completed within the footprint of the existing wastewater treatment plant and that no displacement is expected; if displacement were necessary, the city stated it would comply with the Uniform Relocation Act and Section 104(d).
Next steps: Council approved the resolution to submit the application and authorized signatures on required CDBG forms; if the grant is awarded the project would proceed in coordination with SRF timelines and engineering schedules with target completion in 2027.
