Levelland Council Questions Soaring Wastewater Project Costs

Concerns over a nearly $11 million cost increase for Levelland’s wastewater treatment plant dominated discussion at last Monday's city council meeting, where officials questioned the accuracy of previous estimates and the city’s funding path forward.

City Manager James Fisher opened the conversation with a detailed timeline of the project, which was originally approved in 2022. The current wastewater plant was built in 1983 and is now 41 years old.

“The average lifetime of a wastewater plant is around 40 years. Some say 30 to 40, some say 40 to 50, so 40's a good number,” Fisher said.

At the time of initial approval in September 2022, council members were presented with an opinion of probable cost: $16 million for construction and $3.3 million in engineering and related costs, totaling just over $19 million.

However, when bids were opened in March 2025, the lowest came in at $26.2 million—well over the original projection. The projected total cost, including construction services, contingencies, and subconsultant fees, is now estimated at $30.8 million.

“This is not a good situation for us to be in,” Fisher said. “I'm not happy, I know council's not happy… I apologize to the community that this project has gotten out of hand, but we don't have a choice except to move forward and try to figure out how to find the additional dollars.”

Fisher added that the city has already spent about $2.3 million on design and pre-construction costs. Additional identified funds—largely from bond interest and wastewater reserves—bring the current shortfall to approximately $7 million.

Fisher also emphasized the urgency of the situation.

“We're three years from the day that we pretty much authorized this thing to get busy moving forward. So it's critical that we keep moving forward,” he said.

Jason Hughes, a financial consultant with Hilltop Securities, explained that inflation and broader economic conditions have led to steep increases across multiple municipalities. "This is not just Levelland," Hughes said. "I had one of my cities where the cost increase was about 33%. You're at 35% here, and that tracks."

Stueart asked whether the city could defer part of the new debt or delay issuing it to avoid paying long-term interest on funds not immediately needed. Hughes explained that contractors are unlikely to begin work unless full funding is secured and warned of legislative risks that could limit the city’s future borrowing options if they delay too long.

"There are bills in the legislature right now that could limit our ability to issue certificates of obligation," Hughes said. "And interest rates are volatile—if we wait, it could cost us even more."

Hartman also emphasized that delaying the wastewater project could jeopardize other critical infrastructure efforts, including plans for an updated SCADA system and a new animal services facility.

Despite the tension, council members agreed to postpone any vote until the following week when the full council is expected to be present. The issue of whether to award the bid and how to close the $7 million funding gap will be back on the agenda.

"These aren’t good options," Hartman said. "We're trying to choose the least bad one."

The city is now weighing several possibilities to bridge the funding shortfall, including tapping reserves, increasing rates again, or issuing more debt. As council prepares to revisit the matter, residents can expect the financial pressure surrounding this decades-old project to remain a central concern in the weeks ahead.