Administration proposes ordinance change to enable city financial assistance for lead service-line replacements

Director of Administration Tricia Davy told the Fond du Lac City Council on March 26 that the city needs a narrow ordinance amendment to allow municipal financial assistance for lead service-line replacements so the community can access Wisconsin DNR safe drinking water loans.

Davy said the Public Service Commission considers the water utility and the municipality separate entities and recently ruled that a water utility may not pledge future utility revenues when closing on a DNR safe drinking water loan for lead service removals. Because of that PSC position, the DNR will now allow a municipality itself to pledge future revenues for loan repayments when the municipality provides the assistance. Davy said the proposed change would add language to the city’s lead-service ordinance to authorize the city, alongside the water utility, to provide that financial assistance. She said the full text of the ordinance changes was included with the agenda packet and that the amendment will return for council action in two weeks.

Davy said the program itself is unchanged and that staff are presenting the ordinance language now to enable access to the loan funds; she offered to answer questions and noted that the Public Service Commission reviewed the issue and had no objection to the municipal pledge approach described. The council had no questions at the March 26 meeting; Davy said the item will be scheduled as an action item at the next council meeting for a vote.