South Sioux City’s reliance on Sioux City for wastewater treatment services will soon be coming to an end.
On Friday, the city and the U.S. Environmental Protection Agency announced a $40 million Water Infrastructure Finance and Innovation Act (WIFIA) that will support upgrades and expansions to the city’s wastewater treatment facility, which will help the city treat its own wastewater and end its reliance on the neighboring city for such services.
In 2019, the City of Sioux City notified four neighboring communities, including South Sioux City, that it would be discontinuing the acceptance of wastewater from each community that was sending it to a regional wastewater treatment plant located in the city. The City of South Sioux City immediately went to work, securing funding for its own wastewater treatment plant that began accepting industrial wastewater from local plants in 2024.
The $45 million plant was built with the idea of future expansion, and that expansion can now begin with the issuance of this loan, which will not only allow South Sioux City to fully manage its own wastewater, but allow for it to offer services to nearby communities.
“This project will increase capacity and certainty around wastewater services and advance economic opportunities for northeast Nebraska,” EPA Region 7 Administrator Jim Macy said in a news release Friday. “Treating wastewater with a modern facility that can grow with the community means greater local control for households and businesses.”
South Sioux City will use WIFIA financing for its Wastewater Treatment Facility Expansion Project, which will directly provide wastewater services to residential and commercial customers rather than transporting wastewater to a neighboring city for treatment. This project includes the planning, design, and construction of the expansions that are ultimately expected to reduce operating costs.
The city will also collect and sell biogas to a nearby natural gas facility, which will offset rate increases and create affordable energy.
The City of Sioux City recently approved an ordinance that will charge neighboring cities an extra 27 percent in monthly charges for accepting commercial and industrial wastewater. Sioux City is attempting to collect as much revenue as it can as it makes plans for building a new wastewater treatment plant that, reports indicate, will cost upward of $400 million. By passing this resolution, the city will have six months before it begins collecting the increased charges to South Sioux City and other area communities.
EPA’s WIFIA program provides a powerful financial tool that can significantly accelerate investments in water infrastructure to protect human health and the environment while saving communities millions of dollars. South Sioux City was able to finance over 60 percent of the total project costs with this WIFIA loan. EPA’s WIFIA program provides flexibility for the city to spread loan payments gradually over time to reduce impacts on wastewater bills. EPA’s WIFIA loan will save the city $15 million over the life of the loan.
Local officials expressed gratitude for the availability of the funds to assist in this project.
“I am truly thankful for the cooperation of the federal government, State of Nebraska, and the City of South Sioux City in working together to provide a basic wastewater service for our existing and ever-expanding community,” said South Sioux City Mayor Rod Koch. “We are grateful for our partnership in seeing this to success.”
“It is remarkable of what can be accomplished when federal, state, and local officials work together to solve a wastewater issue that affects so many citizens and industries,” said South Sioux City Administrator Lance Hedquist. “Thanks to all for this outstanding unified effort.”
Work on the addition is already in progress, with an expected early 2027 completion date.
