City applies for grant for water upgrades
The city of Lexington has applied for a $965,000 federal grant for proposed water system upgrades including the replacement of dozens of fire hydrants along with installation of several new water lines.
The city applied for the funds with assistance from the office of U.S. Congressman Mark Alford. In preparing the documentation for the grant application, Mayor Tom Hughes said city officials gathered letters of support from Lafayette Regional Health Center, downtown business owners, the Lexington Area Chamber of Commerce, and Lexington School Superintendent Amanda Finkeldei.
If approved, the grant would cover 80 percent of the cost of the upgrades, while the city’s match would be 20 percent, representing around $160,000.
The city’s portion would come out of the current water utility budget, noted City Administrator Shawnna Funderburk.
Last year, Water Department Supervisor Brent Thompson worked with the fire department to identify around 30 fire hydrants that are most in need of replacement. Thompson also worked to develop an annual testing and inspection plan for the hydrants.
The city budgeted for the replacement of five hydrants in the 2026 fiscal year, having replaced three so far, including one at Franklin Ave. and 17th Street near the site of last April’s fatal explosion. The city has also budgeted for the replacement of five hydrants for fiscal year 2027.
Hughes said the city simply can’t afford the water system improvements without grant support, adding total replacement of one fire hydrant costs around $10,000.
If the grant is approved, between $240,000 and $300,000 would be used for fire hydrant replacement.
Hughes remarked that the replacement of hydrants is absolutely critical for the safety of residents.
“We’re coming up on the anniversary of the explosion. A lot of people in the community are on edge, so we want to make sure all the fire hydrants work. We want every neighborhood to be as safe as it possibly can,” remarked Hughes. “We also need to stay compliant with state law.”
Hughes added that properly taken care of, a new fire hydrant can last 50 to 100 years with normal wear and tear.


