Smithfield's cash-funded water tank: what the minutes say about cost and schedule

Smithfield city is building a 3-million-gallon water storage tank and paying for it in cash, according to reports to the City Council. ^[1][2]

At the Nov. 17, 2025 council meeting, City Manager Justin Lewis reported that "The 3-million-gallon water tank project contract has been awarded and signed by Spindler Construction," that completion was anticipated in September 2026, and that "The City will be paying cash for this project." The minutes do not record a council vote on the contract at that meeting. ^[1]

Cost

In presenting the December 2025 FY2026 budget amendment, Lewis listed $4,700,000 for the new tank, to be paid in cash, and said the contract was signed with substantial completion scheduled for September 2026, according to the Dec. 10 minutes. ^[2]

The city's FY2025 audit says engineering continued that year on the tank and on replacement of a century-old waterline in Smithfield Canyon, and that tank construction would start in FY2026. ^[7]

At June 30, 2025, before tank construction, the water fund reported $10,059,223 in cash and cash equivalents and $2,584,157 in restricted cash. The fund's FY2025 purchases of capital assets totaled $905,580. ^[8]

Schedule

On Jan. 14, 2026, the tank was reported as anticipated to reach substantial completion in September 2026. ^[3]

On March 11, 2026, Lewis reported the project "underway with an anticipated substantial completion date of November 2026." ^[4]

On June 24, 2026, Mayor Aaron Rudie reported that the project was moving forward, with completion anticipated in "the first quarter of 2027." He reported that the projects were "funded with cash reserves" and that "no new bonds or loans are required to complete the projects." ^[6]

On July 8, the mayor reported that the tank's floor had been poured and the walls were being formed. On Sept. 9, Lewis reported the floor complete and the walls going up. ^[5][10]

Other projects paid from reserves

At the same June 24 meeting, Lewis said the city "has been saving money for years for the waterline, storage tank and stormwater projects to pay for them in cash." The canyon spring line replacement and the 1000 South storm water project are separate projects. ^[6]

The city still carried $1,407,000 in sales tax revenue bonds at June 30, 2025, for its administration building and library expansion. Those bonds are unrelated to the tank. ^[11]