The Preston City Council approved construction of a 2,000,000‑gallon drinking‑water storage tank, voting to fund the larger option from available grants and water‑fund reserves.

Council members said the larger tank better matches the city’s projected demand and provides more margin against outages. The project cost estimates presented at the meeting showed a 1.5‑million‑gallon alternative at about $3.9 million and the 2,000,000‑gallon option at about $4.45 million. City staff said choosing the bigger tank would require drawing an additional roughly $863,000 from the water‑fund reserves in the worst‑case scenario if no additional grant money is obtained.

The council’s vote follows an engineering review and a lengthy discussion about long‑term capacity. Staff noted a 2022 study that projected Preston would be about 850,000 gallons short of recommended storage under prior growth assumptions; council members cited that gap when arguing for the larger tank. Staff also told the council a previously secured STAG grant of $3,750,000 would apply to the project but would not cover the full cost.

City staff described the two options and their near‑term budget impacts. “If you do 1,500,000 gallons, you’re gonna be doing $313,000 out of reserves,” said staff member Kelly; “and at 2,000,000, you’re gonna be $863,000,” Kelly added while outlining reserve use if no further grant funding is available. Council members pointed out the water meter loan will end in two years and free up roughly $375,000 a year that can restore reserves over time.

Supporters of the larger tank said the per‑gallon cost is lower for the bigger tank — roughly $2.22 per gallon for 2,000,000 gallons versus about $2.60 per gallon for the 1.5‑million option — and that the additional capacity buys time and resilience for the system. “We should do a 2,000,000‑gallon tank, be forward thinking, don’t be chasing,” one council member said during debate.

The council moved and seconded the motion to approve the 2,000,000‑gallon tank as presented and called for construction to proceed subject to final contracting and grant administration. The mayor thanked council members and staff for the work to secure federal funding and for pressing the grant effort that made most of the project affordable.

Construction timing and next steps: council members and staff said the city will continue pursuing additional grants (including federal sources and the Army Corps where appropriate) but expects to move forward using the STAG grant and reserves to meet the schedule. The project will require engineering finalization and procurement before on‑site work can begin.