Failing lagoon liners and compacting sludge prompt an estimated $5.6 million Charlo Wastewater Lagoon Rehab Project. 

On Tuesday, Oct. 27, the Lake County Commissioners approved a Community Development Block Grant application for this project, one of the many grants the county hopes to use to fund it. 

The U.S. Department of Housing and Urban Development funds the block grant, which has a maximum award of $750,000. Under HUD’s qualifications for this application, 51% or more of residents in the service area must be low- or moderate-income. 

A recent income study found that Charlo is over 64%, meaning Lake County can apply for this grant on behalf of the Charlo Water and Sewer District, which the county manages. 

The project’s civil engineer, CR Leisinger, explained that the 2025 Wastewater Preliminary Engineering Report recommended improvements to Charlo's wastewater treatment facility. 

The facility currently includes three lagoon cells, two wetland cells, a pump station and more. 

The total project scope includes replacing lagoon liners, removing sludge, creating a lift station bypass, installing flow meters and installing two devices that circulate water to improve water quality, prevent stagnation and control algae. In total, replacing the liners, which includes draining the cells, removing sludge, repairing equipment and installing the new membranes, has an estimated cost of nearly $4.8 million. 

Leisinger said the project is needed and that completing it will increase operational flexibility to meet Department of Environmental Quality requirements. According to Leisinger, they aim to secure funding for the project by Spring 2027 and start construction by Fall 2028. He said the goal is to complete construction in one season.

Leisinger said construction should not affect Charlo users, as they can complete the project one cell at a time. 

Because of the high project cost, they also applied for the Montana Department of Natural Resources and Conservation Renewable Resource Grant for $125,000 and the Montana Coal Endowment Program grant through the Department of Commerce for $750,000. 

Leisinger added that the commissioners have also applied for congressional discretionary funding to help fund the project. However, if that funding is not awarded, he said they will likely apply for the USDA Rural Development grant, which could total just over $2 million. 

Rural Development also offers various loan options that could allow them to receive $2.5 million to fund the project. Leisinger said there are also other options to obtain funding through the state revolving fund.