SRF Spotlight: Council Bluff's Community Projects

The State Revolving Fund (SRF) is one of Iowa’s primary resources for financing drinking water infrastructure and water quality improvement projects. Between the Clean Water Loan Program and Drinking Water Loan Program, communities, watershed groups, and public water systems can access low-interest loans to finance projects that range from wastewater treatment to drinking water treatment upgrades, stormwater management, source water protection, and more.

One community that has taken advantage of SRF financing is Council Bluffs, Iowa. Council Bluffs has financed several projects over the past two decades to improve and protect drinking water quality. The largest project was for a new treatment plant on the south side of town. Council Bluffs Water Works (CBWW) applied for SRF financing for the project beginning in 2007. New wells were drilled, and the treatment plant was constructed and brought online in 2010. With additional assistance from the American Recovery Act, CBWW was able to complete the project with an SRF loan of $10.4 million.  Council Bluffs has also utilized SRF to complete a water main project through the West Broadway city corridor and to purchase property around their wellheads to protect the wells and quality of the source water.

Currently, Council Bluffs is working with Iowa SRF on lead service line replacement (LSLR). One of the goals of the Bipartisan Infrastructure Law (BIL) was to provide funding to replace lead service lines across the nation. Additional funding was provided to SRFs from the BIL for LSLR. Iowa SRF received $44.9 million in FY 2022, $29.3 million in FY 2023, and $30 million most recently for FY 2024 for LSLR through the BIL. Iowa SRF is providing the loans at 0% interest for LSLR.

According to CEO and General Manager Brian Cady, CBWW benefits from a relatively good LSL inventory. As far back as the 1880s, pipe installers in Council Bluffs began keeping records of the type of service line they were installing. Lead lines or later copper lines were used for the piping that the Water Works owns, which is between the curb stop at the property line and the water main. Homeowners own the line between the curb stop and the home, which typically does not contain lead in Council Bluffs. However, according to the current LCRR regulations, any remaining lead pipe, and any galvanized pipe that has ever been downstream of lead pipe (GRR) will require replacing.

This year, CBWW was approved for an SRF loan for LSLR. LSLs were banned by Council Bluffs in 1959 and Congress in 1986, so the remaining LSLs are clustered in older neighborhoods with older homes. CBWW has reached out to approximately 250 homeowners about their interest in an LSLR project. Generally, interest in LSLR from homeowners is low. Homeowners are primarily concerned about the cost. While 49% of SRF loans from the BIL will be forgiven for disadvantaged communities, there is still 51% that will need to be paid by the utility or the homeowner.

DNR LSLR webinar recording: https://www.youtube.com/watch?v=MJgqD9yKDJ0