Lexington City Council held a pair of work sessions last month to discuss the city’s capital investment plan for the next five years, with several new expenses being highlighted by city staff.
Chief among them is a proposed repair of Moores Creek dam and an extension of water lines running from the dam to the Enfield storage tank used by the Maury Service Authority.
City Council held several work sessions regarding the dam last year after a sinkhole was discovered at the base of the dam in December 2024, discussing possible solutions and steps on how to proceed with addressing the issue.
A geotechnical and engineering analysis of the dam was conducted which proposed two possible solutions: decommission the dam or perform repairs to it in hopes of addressing the current sinkhole and preventing future ones from occurring. Both solutions will cost between $2.5 million and $3 million and take about two years to complete.
Under a 1986 agreement, Lexington is responsible for maintaining the dam as an emergency water source for both the city and Rockbridge County. The water line that runs from the dam for that purpose does not currently reach the MSA’s Enfield storage tank. Lexington is hoping to move forward with either repairing or decommissioning the dam in the 2026-27 fiscal year and has earmarked $3 million in the capital investment plan for both. The city’s preference is to decommission the dam, which would require agreement from the Rockbridge County Board of Supervisors.
In a memo attached to the proposed CIP, Lexington City Manager Tom Carroll said that the county “has been painfully slow to respond to the city’s invitation to discuss this,” and that there had been only one meeting in December to discuss the county’s perspective. The engineering report that offered the solution was presented to the city in August 2025.
Without a signoff from the county to decommission the dam, the city is moving forward with the proposed repair – installing a toe berm at the base of the dam. The study noted that, while this solution would address the issue with the current sinkhole, it could potentially unveil other structural issues with the dam that would also need to be addressed. In addition to the repair, the city has two options for extending the service line to the Enfield tank to allow the dam to fulfill its intended purpose as an emergency water supply. While the city would pay for the cost of the installation of new line – and any repairs that need to be done to the existing line – under the 1986 agreement, they are to be reimbursed for those costs by the county.
There are two proposed routes for the line to take. The first is a direct route, which Carroll said in the memo is “more or less a straight shot north by northwest … as the crow flies” from the current path of the original piping to the Enfield tank. The cost for the installation of that line is estimated to be just under $3.75 million. The second option for the route would run along Ross Road, which would allow the line to be more serviceable, but would also be longer and therefore more expensive, with an estimated cost of more than $8.42 million. The current proposed capital investment plan has the first option listed under FY 27, but also notes the cost for the second option as a “not yet programmed” expense. The $3 million for the repair to the dam is also listed as an expense for the 2027 fiscal year with the cost for decommissioning the dam also included on the “not yet programmed” expense list.
The city plans to apply for a grant to help cover some of the cost of the work on the dam, either for repairs or decommissioning it, before the end of the month. Carroll told City Council at the second work session, which was held prior to council’s regular business meeting on Feb. 19, that the city didn’t have to specify whether they were applying for a grant to repair or decommission the dam, but indicated that a grant to decommission the grant would be viewed more favorably.
The Rockbridge County Board of Supervisors has had discussions in closed sessions regarding Moores Creek Dam at its last two meetings but has taken no action. County Administrator Spencer Suter told The News-Gazette on Monday that the dam is scheduled to be on the agenda for the board’s next meeting on March 9.
Lexington City Council does not have any action regarding Moores Creek dam or the grant application on the agenda for its next meeting on Thursday.
-- The first of the two work ses- fiscal year that the city has in the CIP include $53,023 toward new security cameras for the Rockbridge County Courthouse and $60,000 for a new fence at Brewbaker Park.
The city has $60,000 in upgrades at the pool slated for the upcoming fiscal year – $15,000 for upgrades to the bathrooms and kitchen, and $45,000 for re-tiling the pool. There are $450,000 in improvements to Jordans Point Park scheduled for FY 27, including installing tiered, amphitheater-style landscaping by the river along with an ADA-compliant path and picnic area, and realigning the road to the boat ramp. These improvements would complete the final phase of improvements proposed by the Jordans Point Park Master Plan.
Other large projects that the city will be contributing to in the upcoming fiscal year through the city’s general fund include $284,400 for improvements to the central dispatch radio system, $255,000 for new tennis courts at Rockbridge County High School and $906,100 toward the proposed Rockbridge County Recreation Center. The city also has $200,000 budgeted in the CIP for design work on improvements to the Mc-Crum’s parking lot on Jefferson Street, and there is $2 million currently budgeted in FY28 for the work, though that amount and timeline may change as the design phase is carried out and construction on some buildings adjacent to the lot continues.
There are also two VDOT projects on the books for FY 27: Replacement of the bridge on Lime Kiln Road, which is estimated to cost over $2.4 million, and the first phase of installation of a sidewalk along Waddell Street, which is estimated to cost $1.2 million.
In addition to Moores Creek Dam, the Feb. 19 work session also included discussion of upcoming water, wastewater and stormwater projects. The first phase of improvements to the city’s water and sewer system in the Jackson Avenue area is slated to begin in the upcoming fiscal year at a cost of $4.83 million, with an additional $4 million of work scheduled for FY 29 and $150,000 in planning costs in both F Y 2 8 a nd F Y 30. T he second phase of the improvements is currently scheduled for FY31 with a cost of $4.5 million. The other big wastewater project scheduled for FY 27 is a realignment and upgrade to the Oak Grove sewer system with a cost of $1.5 million.
From the newly created stormwater fund, $400,000 is budgeted in FY 27 for design work for repairs and upgrades to the stormwater system that runs from Hopkins Green down to Massie Street along Jefferson Street. Construction on the system is scheduled for FY 28 with a preliminary estimated cost of $4 million. The repairs would address issues of water pooling at the north end of Jefferson Street near the Route 11 triangle during heavy rains, as well as improve the aging infrastructure to prevent serious problems from occurring along Jefferson Street.
Two other projects are also scheduled in FY 28 for storm drain improvements. The first is a storm drain between Myers Street and McLaughlin Street, which is estimated to cost $265,000. The second is a drain that runs from Wallace Street to South Main Street, letting out near the Lexington Fire Department, which is estimated to cost $846,045.
In addition to the design work on the Jefferson Street stormwater system, $129,000 is budgeted for FY 27 for design work on improvements to the stormwater system at the intersection of Randolph and Henry streets by the Laundry Land Laundromat. The preliminary estimate of the cost of the improvements is $2.1 million, but the work has not been scheduled for a specific fiscal year yet.
