Council finance committee refers $38.1 million water infrastructure loan order to full council

The New Bedford Committee on Finance voted 11-0 on Monday to refer to the full City Council a loan order seeking $38,100,000 to continue capital planning and construction for the city’s water distribution and treatment systems.

City Engineer Sean Side told the committee the appropriation would fund three program areas: a fourth phase of lead service-line replacement, a transmission main reinforcement program, and a second phase of water distribution improvements. “Before you tonight is an ask for $38,100,000 in an appropriation to continue the city's water infrastructure program,” Side said.

The loan order, submitted by Mayor Mitchell and presented to the committee on April 24, was described as part of a broader multi-year capital effort. Side said the city currently manages roughly $135 million in active water projects since 2018 and about $350 million across water and wastewater. He said the requested $38.1 million is a mix of general obligation (G.O.) and State Revolving Fund (SRF) financing and that SRF availability this year has been limited by a new $15 million-per-community cap in the MassDEP intended-use plan.

According to Side, the appropriation would allocate roughly $25 million for the lead service program (phase 4), with the remainder split between transmission main testing/valving work and distribution system replacements. Side summarized recent and upcoming work: phase 1 replaced about 1,200 services and about 4,000 feet of main; phase 2 (under construction) will replace about 2,200 services and 10,000 feet of main (expected complete December 2025); phase 3 (out to bid) targets roughly 2,400 services; and phase 4 is intended to remove about half of the remaining lead services, roughly 1,100 services after phase 3 is complete.

Committee members pressed administration staff on funding details. Councilor Joseph Lopes and Councilor Ryan Perera asked about SRF interest rates and principal forgiveness; Side said SRF loans remain low — roughly 2 percent over 20 years — and that principal forgiveness varies by project. He said earlier projects received as much as roughly 60 percent principal forgiveness for certain components, but that forgiveness is expected to be lower for this funding cycle and that components of the funding mix may shift from the previous 90/10 (SRF/G.O.) to something closer to 50/50 because of the SRF cap.

Councilors also questioned program capacity and scheduling. Side said construction is not expected to begin until mid-2026 — the appropriation is needed by June 30 for MassDEP scheduling — and that design and permitting will occupy the period between approval and construction. He said the department coordinates water work with the city’s street reconstruction program to avoid multiple dig-ups of the same street and to stretch funding.

The committee’s motion to refer the loan order to the full City Council was made by Councilor Ryan Perera and seconded by Councilor Derek Baptiste. The roll call vote was unanimous (11–0): Councilors Abreu, Baptiste, Burgo, Carney, Choquette, Giesta, Gomes, Lopes, Morad, Oliver and Perera recorded yes votes. The item will appear on the full City Council agenda later this month for final action.

Votes at a glance: the committee referred the loan order for $38,100,000 (mover: Councilor Ryan Perera; second: Councilor Derek Baptiste; outcome: referred to full council, vote 11–0).

The committee was told the SRF timeline requires an appropriation approved by June 30 for inclusion in the MassDEP intended-use plan; staff said MassDEP is less willing to grant extensions this year than in past cycles. Side said staff will return to council later in the process for loan approval documentation and that construction would not begin until mid-2026 if the schedule proceeds as projected.