Council hears proposed ordinance to enable city-backed financial assistance for lead service replacements

Director of Administration Trisha Davey told the Fond du Lac City Council on March 26 that the city needs to amend its lead service-line ordinance so municipal financial assistance can be paired with Wisconsin DNR safe drinking water loan funds for resident lead-service replacements. Davey said the Public Service Commission treats the municipal water utility and the city as separate entities and recently determined a utility may not pledge future revenues when closing on certain DNR loans; the DNR will permit a municipality to pledge future municipal revenues for the same loans.

Davey said the proposed change is limited to ordinance language that will allow the city, alongside the water utility, to provide financial assistance to property owners for lead-service-line replacement so the loans can be used. She said the full text of the proposed additions was included in the meeting packet and that the item will return as an action item in two weeks for a council vote.

Why it matters: The change is intended to enable use of DNR safe drinking water loan funds to replace lead service lines by ensuring an eligible revenue pledge structure is in place at the municipal level. The council did not take a vote on March 26; the presentation was informational and the amendment will appear for action at a subsequent meeting.

Ending: Councilmembers thanked administration for bringing the change forward; staff did not request immediate direction beyond preparing the ordinance for the next meeting.