Peekskill says Lower South Street sewer project estimate rose to $11.4 million; staff seeking grants

During department reports, the city manager told council members that the Lower South Street sewer line replacement cost estimate has increased from about $4.3 million to $11.4 million. Staff said engineering survey and design work began June 25 and the city has prepared an application for state revolving funds and an additional grant application that will be submitted before the 07/27/2026 deadline to seek financing assistance.

Why it matters: A near tripling of the cost estimate could affect the city's capital program and borrowing plans and will likely require additional grant funding or reallocation of city funds if grants are not awarded.

Next step: Staff will finalize grant materials and report back; the project remains in design and the city indicated it will continue to pursue state and federal funding avenues.