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Council approves 2,000,000-gallon water storage tank after grant and reserve review
Summary
City staff presented two tank-size options and cost estimates; council approved a 2,000,000-gallon storage tank (estimated ~$4.45 million) with an existing $3.75 million grant and using reserves for the remainder, after discussion of reserve levels and long-term capacity needs.
City engineer/staff presented two options to increase water storage: a 1.5 million-gallon tank (~$3.9M) and a 2.0 million-gallon tank (~$4.45M). Staff explained the grant portfolio includes $3.75M and that using reserves would be required for the difference: roughly $313,000 from reserves for the 1.5M option and an estimated $863,000 out of reserves for the 2.0M option if no additional grant funding is secured.
Kelly summarized per-gallon costs and reserve impacts and the council discussed long-term capacity needs referenced in a 2022 study that projected storage shortfalls by 2040. One councilmember argued for the larger tank to be "forward thinking" and to avoid future shortfalls; another noted the reserves should rebuild when a meter loan finishes in two years. After discussion, the council voted to approve the 2,000,000-gallon tank and proceed with project steps.
Staff will continue to pursue additional grant funding opportunities, including the Army Corps of Engineers, and will move forward with procurement and engineering steps consistent with the approved design and budget plan.
