Minot confronts NAWS funding gap as Biota delays extend
City of Minot Water and Sewer Division, North Dakota · Meeting date: November 2, 2026 · Published: November 3, 2026
Minot’s $142 million cap on NAWS capital commitments leaves limited room for remaining work, while a second failure of treatment-plant underdrains has delayed the start of lake-water deliveries. City officials are considering whether rates, sales tax or low-cost state loans should cover future local costs.
Key points
- Minot’s 2024 NAWS agreement commits city sales-tax revenue to 35% of remaining capital costs, capped at $142 million.
- The city had reimbursed about $108 million by the end of the 2025 biennium and faces nearly $20 million more in outstanding contracts and engineering commitments.
- Officials put the cost of remaining NAWS work at $135 million and said a full 35% city share would be just over $47 million, exceeding available capacity under the cap.
- Biota Water Treatment Plant underdrains failed again during testing in June; the latest replacement schedule runs from August 2027 to January 2028.
Full report
Minot faces a renewed NAWS financing challenge as delays at the Biota Water Treatment Plant extend the wait for lake water and narrow the city’s remaining capacity under its $142 million commitment to the Northwest Area Water Supply project.
The city’s 2024 financing agreement with the North Dakota Department of Water Resources committed Minot sales-tax revenue to 35% of the capital cost of remaining NAWS projects, up to $142 million. The cap was intended to give the city a defined endpoint for its NAWS exposure as it also prepares to increase funding for the Mouse River Enhanced Flood Protection Plan.
By the end of the 2025 biennium, Minot had reimbursed about $108 million for NAWS. Outstanding construction contracts represent about $18 million of the city’s share, with engineering commitments adding roughly $1 million, taking committed costs to just under $128 million. That leaves about $14 million within the agreed cap.
Officials estimated that remaining NAWS work totals $135 million. If Minot were to fund 35% of that work, its anticipated share would be just over $47 million. Staff also cited potential federal funding of $10 million, but said a substantial funding gap would remain under that scenario.
The city is seeking to distinguish between assets serving Minot and works north of the city that serve other users. Staff said it would question whether future expansion of the Biota plant should remain federally funded, and whether improvements including inline booster pumps, a source reservoir and booster pump, and capacity upgrades for All Seasons Water Users District should be funded through a broader set of water rates.
The 2024 agreement permits the remaining local share to be funded from either Minot sales tax or water rates. Officials also raised the option of using Infrastructure Revolving Loan Fund financing at 2%, potentially spreading costs over 10 to 15 years.
Meanwhile, Biota’s underdrains have become the principal construction constraint. A defective-work order was issued around September 2025; replacement underdrains subsequently failed during testing in June 2026. The State Water Commission directed the contractor to use a different supplier. The latest schedule for the replacement work extends from August 2027 to January 2028, although staff said elements of that schedule could potentially be shortened.
A temporary intake is available, meaning lake water could be brought to Biota if the plant were ready. Construction of the permanent intake, including a roughly 1,200-foot pipe into deeper lake water, is expected to continue into next spring or midsummer. Council is expected to receive future recommendations on the linked NAWS and flood-control funding strategy.
This summary was generated by AI based on the source document and may contain errors.
Source: Special City Council Meeting - MREFPP & NAWS, City of Minot Water and Sewer Division