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Cheyenne officials have asked Wyoming’s State Loan and Investment Board for a $20 million loan to start identifying and addressing lead-contaminated water lines across the city—an urgent move as federal deadlines force municipalities to map and begin replacing hazardous service lines within the next few years. The initial funding would bankroll testing and prioritization work, with a focus on high-risk sites such as hospitals and schools.
Scope and funding
The Board of Public Utilities estimates the full replacement effort could reach roughly $100 million. The newly requested state loan, drawn from the Drinking Water State Revolving Fund, would cover the first phase: surveys, testing and targeted replacements in the most vulnerable locations.
City engineers stressed the timing is important. The Environmental Protection Agency requires communities to complete inventories of where lead pipes remain by the end of 2027 and to begin removal efforts by 2030. Cheyenne’s application also seeks to take advantage of unusually favorable loan terms available through the state program.
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Key incentives include a 0% interest rate and the possibility that up to 25% of the principal could be forgiven—conditions city staff say would help limit the financial burden on ratepayers.
How the work will affect homeowners
Cheyenne operates under a split-utility system, meaning property owners share responsibility for service lines on their land. The BOPU’s inspections will extend to private residences, and homeowners can be notified if lead is discovered on their portion of the line.
According to city engineers, the municipal plan is to fund replacement of the utility-owned segment, inform affected residents of risks, and provide guidance on interim measures while the full replacement schedule is developed. Property owners would still be responsible for their side of the connection but could request prioritization if contamination is found.
Council reaction and next steps
The City Council approved the loan application unanimously. One public speaker questioned the city’s priorities and reliance on state financing; council members defended the request as necessary to understand and confront a large, unresolved problem.
Council President Tom Segrave tied the effort to national policy changes prompted by earlier crises, noting those shifts pushed the federal government to demand lead-line removal across the country. Councilor Pete Laybourn described the application as an important step toward transparency and action by the BOPU and the city.
- Loan request: $20 million from Wyoming State Loan and Investment Board
- Estimated total project cost: ~$100 million
- Program perks: 0% interest, up to 25% principal forgiveness
- Regulatory deadlines: Inventory complete by end of 2027; replacements to begin by 2030
- Priority sites: hospitals, schools and other high-risk locations
Other council spending approved this week
Council members also reviewed and signed off on several unrelated expenditures and grant applications during the same meeting.
- $275,000 purchase for an 80%-scale replica of the Vietnam Veterans Memorial
- Application for an $868,000 grant to improve accessibility and safety at the Pershing and Windmill intersection
- Distribution of several hundred thousand dollars to local organizations, including the Downtown Development Authority and CheyenneLEADS
The loan application has been submitted to the state board for consideration. If approved, Cheyenne officials say the BOPU will begin field testing and mapping work this year, followed by a longer phased replacement program that will be scheduled based on risk and funding availability. Residents can expect outreach from the city if their properties are part of the initial investigations.
