Manager: city has invitation to apply for federal water loan; $350M plant requires federal support

Council members asked why a full water-plant project did not appear as a line item in the tentative budget. The city manager explained that the water-plant buildout is a multi-hundred-million-dollar project — roughly $350 million by the manager’s estimate — and that the city has not received a loan; rather, it has an "invitation to apply" for a federal loan program.

"We don't have a WIFIA loan. We had an invitation to apply," the manager told the dais, adding the city cannot request a specific loan amount until it has engineering and design work that defines the scope. The manager said the water fund contains dollars for repairs and engineering work but that full construction would require federal funding.

Staff noted the budget includes targeted capital investments — stormwater, water-and-sewer projects and water-main repairs — and emphasized that any large plant project depends on external grants or loans and a defined project scope before a loan application could be submitted.

Councilmembers pressed staff to continue applying for federal funding and to identify interim repairs funded from the enterprise fund while pursuing larger grants.