Redding advances $74M pump station replacement with $50M SRF loan
Redding Municipal Utilities, California · Meeting date: August 18, 2026 · Published: August 22, 2026
The California city will relocate its 1939-vintage pump station upstream on the Sacramento River to secure a deeper intake and resolve capacity issues tied to seasonal river levels.
Key points
- The estimated $74.1 million project includes $58.1 million for construction and contingencies, with bidding expected in early 2027 and a four-year construction timeline.
- Redding secured a $50 million low-interest loan from the State Water Resources Control Board, prompting the city to abandon a $40 million WIFIA loan application.
- To cover the remaining $16.6 million funding gap, the city is weighing the use of available water utility reserves or municipal bonds.
- The new upstream location will feature a deeper intake independent of the Anderson-Cottonwood Irrigation District diversion dam, which currently limits pumping capacity during low river levels.
Full report
The City of Redding, California, is preparing to bid its $74.1 million Pump Station 1 Replacement Project in early 2027, backed by a newly approved $50 million State Revolving Fund (SRF) loan.
Water Utility Manager Josh Watkins provided a project update to the Redding City Council on August 18, detailing plans to replace the 87-year-old facility. Built in 1939, the existing pump house on the Sacramento River has reached the end of its useful life. Its shallow intake screens currently limit pumping capacity during low river levels, particularly during winter months when the Anderson-Cottonwood Irrigation District (ACID) diversion dam is not in place.
To resolve these operational constraints and meet future capacity demands, the city will construct a new pump station upstream near the New River Trail. The relocated facility will feature a deeper intake that is not dependent on ACID operations, alongside improved access for maintenance and deliveries. The project will also include the restoration of the nearby Ginny Creek.
According to the project estimate, construction and contingencies will cost approximately $58.1 million. Additional costs include $8 million for project development, $6.5 million for contract administration and inspection, and $1 million for environmental mitigation credits.
Redding has already expended roughly $8 million in water utility cash to advance the project through its design and environmental phases. The project's funding strategy shifted recently after the State Water Resources Control Board approved the $50 million SRF loan. Due to the favorable terms of the SRF financing, city staff elected to drop a $40 million loan application with the EPA's Water Infrastructure Finance and Innovation Act (WIFIA) program.
The city currently faces an unfunded balance of approximately $16.6 million. Watkins noted that the water utility holds roughly $62 million in reserves, with about $20 million available after accounting for other dedicated projects. The city may utilize these reserves to fund the balance or explore the municipal bond market, potentially bundling the pump station gap with other water capital projects. The final funding gap could also be reduced if Redding is successful in securing two pending environmental and fish passage grants totaling $17 million.
The project design is 100% complete, and the city is currently finalizing a complex environmental permitting process, awaiting a biological opinion from the National Marine Fisheries Service. Once permits and mitigation fees are finalized, the city plans to advertise the project for a 60-day bid period. Construction is expected to take four years, complicated by a narrow in-river work window restricted to February through April.
This summary was generated by AI based on the source document and may contain errors.
Source: Redding City Council Regular Meeting, Redding Municipal Utilities