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Preston council approves 2-million-gallon water tank; $3.75M grant covers most costs

Preston City Council · October 13, 2025
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Summary

Mayor Dan Keller reported a $3,750,000 grant for water storage; council voted unanimously to approve construction of a 2-million-gallon tank estimated at $4,450,000, noting that reserves may cover the shortfall if no further grants are obtained.

Mayor Dan Keller presented cost estimates and grant funding for new water storage: "The City of Preston received $3,750,000.00 grant for water tanks," he said, and the city considered two sizes: a 1.5-million-gallon tank estimated at $3,900,000 and a 2-million-gallon tank estimated at $4,450,000. Council discussed long-term capacity needs and favored the larger tank to meet future demand.

Councilmember Chris Larsen moved to approve the 2-million-gallon tank as proposed by Keller Associates and the motion received unanimous approval. The council noted that if additional grant funding is not secured the balance would likely come from city reserves and that staff would continue to pursue external grants and financing options before final procurement.