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Marshfield Utilities commissioners direct staff to use commission-designated fund for private lead-service loan shortfall
Summary
Commissioners instructed staff to pursue using commission-designated funds to cover the private-side portion of a state lead-service funding program capped at about $32,550; the commission will forward the plan to city council for final approval.
The Marshfield Utilities Commission voted to direct staff to pursue option two for securing a loan portion tied to a state-funded private lead water service replacement program: use the commission-designated fund as the repayment source for the required local share.
Staff said the state's program was applied by census block, producing stronger principal-forgiveness results: two census blocks qualified for 100% principal forgiveness and three blocks for 75% forgiveness on the private-side work. Staff explained the utility can request up to $32,550 as the local pledge for the private-side portion; the application used a $7,000 per-property proxy when estimating needs.
The commission discussed three possible approaches for covering the local share: (1) request a rate increase via the Public Service Commission to create a revenue adder, (2) create a repayment program by ordinance that places the repayment obligation on property owners (with a potential 10-year term and interest between 0.25%–4%), or (3) use commission-designated funds and work with the city to issue general-obligation notes. Staff noted the city must issue any notes; the utility cannot put the debt in its own name.
Given the small dollar amount relative to the city's borrowing capacity and the administrative complications of other options, a motion was made and seconded directing staff to pursue option two: use the commission-designated fund as the repayment source for notes related to the private-side loan portion. In a roll-call vote recorded in the transcript, Commissioners Peschel, Folke, Duncan, Eberl and Capel voted aye; the motion carried.
Staff said they will continue coordination with the Department of Natural Resources, bond counsel and city staff, and will present formal approvals to the common council as required.
