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Fargo staff outlines federal grant and loan availability for lead-service-line replacements, asks commission to decide local share approach
Summary
City water staff said federal and state funding is available to replace lead service lines on the private side of connections and presented options for how much of the local share customers should pay versus the city covering; commissioners urged broad participation and noted the grant funding window is limited.
Troy, a city water staff member, briefed the commission on available grant and loan funding for lead-service-line (LSL) replacement and asked for direction on the local share the city should require homeowners to pay for private-side replacements.
Why it matters: Under the new federal/state lead-and-copper rule revisions, water systems must inventory and reduce LSL risks; staff told the commission that Fargo has roughly 2,150 known lead service lines and about 50 service lines of unknown material, concentrated in older core neighborhoods.
Funding and terms: Troy said state-administered federal funds are available now. Staff’s summary showed roughly $23.3 million in grant or principal-forgiveness funding and an estimated $11.7 million in a state drinking-water SRF loan (a combined program that would make about two-thirds grant and one-third loan available for Fargo). The SRF loan terms shown in staff materials were highly favorable: an approximate interest rate of 0.5 percent and a 30-year term. Staff estimated…
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