Council approves bond measures and accepts $2 million DNR principal-forgiveness aid for lead service line removal

Watertown’s Common Council on Sept. 2 approved multiple financing resolutions and accepted a principal-forgiveness agreement from the Wisconsin Department of Natural Resources to support the city’s lead service line removal project.

Resolutions approved included authorization for water system revenue bonds (exhibit 09/1980) to finance water system work; taxable general obligation promissory notes (exhibit 09/1981) tied to the public portion of the project; and a tax-exempt general obligation promissory notes authorization for $964,017 (exhibit 09/1982). Council members moved and seconded the measures and voted them onto the record by roll calls during the meeting.

Separately, the council adopted exhibit 9783, a resolution authorizing execution of a Wisconsin Department of Natural Resources principal-forgiven financial assistance agreement for lead service line removal (project 5439-09). City staff described the principal forgiveness as treated like a grant; the meeting record quotes staff saying the principal forgiveness amount is $2,000,000 and that it will benefit properties by removing lead service lines that otherwise would remain.

Council members asked clarifying questions about why borrowing and notes were used for different portions of the project. Pete (city staff) explained that the private portion of the project can be pledged against water revenue bonds while the public portion requires general-obligation financing.

All listed financing resolutions and the DNR principal-forgiveness agreement were approved by recorded votes during the Sept. 2 meeting.