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Staff reports strong prospects for state principal‑forgiveness on 2025 water and sewer projects
Summary
City staff reported preliminary awards and strong eligibility for principal forgiveness on multiple 2025 water and sewer projects, including scattered lateral replacement and lead service work; staff said private‑side replacements are likely eligible for 100% principal forgiveness.
City staff told the Two Rivers City Council that preliminary results on funding applications indicate favorable awards and significant principal forgiveness for next year’s water and sewer projects.
Matt (public works staff) summarized the proposed 2025 program that includes major street reconstruction (Harbor/16th/Emmett), scattered sanitary lateral replacements on the east side, east‑side lead water service replacements, cured‑in‑place sewer lining and an outfall rehabilitation. He said the total program of work is roughly $8.4 million in estimates.
Staff reported the DNR clean water and safe drinking water funding applications returned recommended assistance: roughly $705,000 in principal forgiveness on clean water loans and about $107,000 in principal forgiveness for drinking‑water funding for the Harbor/16th/Emmett project. For scattered sanitary laterals and east‑side lead water service replacement staff reported approximately $425,000 in principal forgiveness on the sewer lateral side, $259,664 in principal forgiveness for public side water services, and an anticipated 100% principal forgiveness for roughly $279,000 of private‑side lead service replacements.
Matt said the city will rely on a mix of principal forgiveness and low‑interest loans to fund the work, and that some local borrowing will still be required. Greg cautioned that federal or state funding priorities can change with administrations, but said the city should pursue available principal forgiveness while it’s offered.
Council members welcomed the preliminary awards and directed staff to move forward with finalizing grant/loan documents and bringing contracts to council for authorization as needed. No formal action was required at the meeting; staff said detailed project contracts and borrowing parameters will come to the Personnel & Finance Committee and then to the full council.
Staff noted that a schedule and funding plan will be prepared to meet ARPA and other grant spending deadlines where applicable; the council is considering general obligation borrowing to cover the local share of projects and will review parameters and timing in committee.
