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Title:
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Presentation and discussion regarding the state revolving fund loan program to finance the design and construction of stormwater infrastructure in Littleton
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Agenda Date: 12/16/2025
Subject:
Title
Presentation and discussion regarding the state revolving fund loan program to finance the design and construction of stormwater infrastructure in Littleton
Body
From:
James L. Becklenberg, City Manager
Prepared by:
Brent Soderlin, Public Works Director
Presentations:
Brent Soderlin, Public Works Director
PURPOSE:
The city has a significant backlog of stormwater infrastructure maintenance that is needed along with a trend of annual stormwater funding needs that exceed available revenues. The city is exploring applying for the Colorado Department of Public Health & Environment's State Revolving Fund loan program. One preapplication requirement of this program is that the city must hold a public meeting discussing its plan to pursue participation in the state revolving fund program.
LONG-TERM OUTCOME(S) SERVED:
Safe Community: This discussion is consistent with the city council's strategic plan outcome of ensuring the safety and well-being of residents through strategic reinvestment in public infrastructure.
DISCUSSION:
The State Revolving Fund program offers very low-interest rate loans that finance the design and construction of Colorado water, wastewater, and stormwater infrastructure. Importantly, the City's application is the first step in the process and does not constitute approval of loan acceptance or terms. Staff will return to the Council in coming months to refine the project plan and loan amounts needed, the final loan repayment terms, and implications for rate payers.
Projects Planned for 2026 & 2027
Staff has identified nine high priority projects for 2026 and 2027:
High Priority Project Estimated Cost
High Priority - Elati South of Ridge
1,000,000
High Priority - Ridge and Prince
500,000
High Priority - Littles Creek at Caley
750,000
High Priority - Broadway at Weaver
600,000
Total FY 2026 Funding Needed
$2,850,000
Rangeview Gulch Improvements
1,100,000
Ridgeview Park Detention
5,000,000
Elati Street
600,000
Lee Gulch at Horseshoe Park
1,500,000
Rangeview Gulch at Turtle Pond
1,500,000
Total FY 2027 Funding Needed
$9,700,000
Storm Drainage Fund Availability
The Storm Drainage Fund does not have available fund balance to address the identified high priority projects.
BACKGROUND:
Since 2023, there has been exponential growth in the funding needs within the Storm Sewer Enterprise Fund. Emergency repairs have caused expenditures to exceed revenues and staff anticipate that this trend will continue into the foreseeable future. Recent emergency conditions, particularly the record rainfall in 2023, have highlighted the vulnerabilities within our aging stormwater infrastructure, leading to the collapse of several corrugated metal pipes (CMP). Public Works staff is currently focused on CMPs, as most have been in service for 30 to 40 years and have exceeded their design lives. The city owns and maintains 54 miles of storm sewer, of which approximately 6.8% (or roughly 3.6 miles) are CMPs.
Prior Actions or Discussions
City Council discussed unfunded stormwater infrastructure needs at its March 11, 2025, study session.
FISCAL IMPACTS:
Debt service for any loans used for stormwater infrastructure will be paid from Storm Sewer Enterprise Fund revenues.
STAFF RECOMMENDATION:
To address funding deficits and the urgent need to repair high-risk storm infrastructure, staff recommends pursuing State Revolving Fund loans.
ALTERNATIVES:
If council chooses to not support pursuit of State Revolving Fund loans, alternatives include:
1. Working with our financial advisors to secure a private financing for the projects.
2. Delay projects to continue a pay-as-you go model. This could stretch high priority projects into the 2030s.
Proposed Motion