Lolo Water and Wastewater System Improvements

Project Overview

Missoula County is starting the public process to establish a new Rural Special Improvement District (RSID) to help fund needed repairs and upgrades to the water and wastewater system in Lolo.

Water system: The existing water system has reached full capacity, and no new connections are currently allowed. The County plans to upgrade wells #1 and #2, which will allow the district to pump at its full water right and expand capacity for approximately 400 new connections.

These new improvements will also provide backup generator support for emergency situations and mainline replacement at critical locations. For example, a mainline replacement is scheduled near Browman Way, which runs west underneath Highway 93 South and connects to existing pipe on Ridgeway near Coulter Pine Street. This mainline is at least 50 years old and is at the end of its useful life.

Wastewater system: A 2026 study determined the existing system can accommodate 400 additional connections and no major capacity upgrades are needed at this time. This project will replace existing headworks, influent and RAS pumps, cell liners and install new perimeter fencing.

Anticipated upgrades: Once Phase 2 improvements are completed, most new connections will be required to pay impact fees. This will be used to offset the cost of future system upgrades.

Phase 2 Funding

Phase 2 improvements are estimated to cost $7.3 million. The County will use a combination of funding sources to pay for these improvements and upgrades:

$1.75 million in federal funding that Western Montana's congressional delegation recently secured through the appropriations process (water project eligible only).

State Revolving Fund (SRF) is a federal-state partnership program that provides low-interest or zero-interest loans for local drinking water, wastewater and stormwater infrastructure projects. The County will issue bonds through this program, including $3.2 million for the water RSID and $2.3 million for the sewer RSID. These bonds will be paid off over 20 years via property tax assessments on the parcels within the district. Property owners will see the assessments on their tax bills starting in 2028.

What will residents pay?

Property owners will receive a notice later in October that will include the maximum principal tax assessment for their parcel. In total, Missoula County will collect up to $5.5 million from RSID 8490, excluding bond interest. The SRF loans that will be used for this project are low-interest loans through the State specifically designed for infrastructure projects, and the exact interest rates and total amounts per parcel cannot be determined until the bonds are issued.

There are 1,390 assessable parcels in the district. The assessments are proposed to be distributed at an equal amount per parcel. This would be $200 per year over a 20-year period (not including interest) OR $3,992.80 lumpsum ($2,294.24 water and $1,698.56 sewer).

Throughout the district, there are neighborhood parks and common areas that use these services (e.g., irrigation). Properties that share a common area will be assessed for their prorated portion of their common area. The maximum principal assessment for a parcel in the district will be $4,436.45 ($2,549.16 water and $1,887.29 sewer).

Timeline

Public Process:

1st Hearing – Oct. 8
- Staff will present a resolution to the board declaring their intention to create the RSID. The resolution outlines the district boundaries, project funding, assessments and next steps. Click here to view the approved notice of hearing.

Publication, Mailing and Protest Period – Oct. 17-Nov. 20
- Notice of the Resolution of Intent and 2nd hearing is published in the newspaper on Oct. 17 and 24.
- By Oct. 17, all property owners within the district will be mailed a Notice of Hearing, explaining how to comment on and/or protest the creation of the district.
- The protest period is Oct. 17-Nov. 20. Protests should be delivered to the Missoula County Clerk & Recorder (in person, mail, or scanned and emailed). The protest must “be in writing, identify the property in the District owned by the protestor, identify whether the protest is against the Phase II Water System Improvements or the Phase II Sewer System Improvements or both, and be signed by all owners of the property.”

2nd Hearing – Dec. 3
- The commissioners will be presented with the protests received by the Clerk & Treasurer, take public comment and determine whether to move forward with the RSID.
- Subject to subsection 2(b), the district may not be created if more than 50% of property owners have protested the district. MCA 7-12-2112
- If approved, the commission will adopt a resolution creating the district.

Construction

Pending completion of the public process for the proposed RSIDs, Missoula County Public Works plans to bid the project toward the end of 2026 or beginning of 2027. Construction would tentatively begin in the spring of 2027 and is projected to be completed in November/December 2027.

Property Assessments

Bonds will be issued once construction is complete, and assessments will appear on tax bills the year after the bonds are issued. With an expected construction completion date of December 2027, the bonds would be issued in early 2028, with assessments appearing on tax bills in the fall of 2028.

The final year of assessments for RSID 8490 would be 2048. Beginning in 2028, taxpayers will have the option to pay off their full RSID 8490 assessment early and avoid the interest applied to their parcel.