Finance committee backs $26.2 million Providence Water financing for lead service replacements

The Providence Finance Committee voted to recommend that the full City Council approve an ordinance authorizing up to $26,200,000 in financing to support Providence Water's accelerated replacement of lead service lines.

The ordinance, read into the record by the clerk, would allow the utility to issue water revenue bonds to cover public and private side lead service line replacement and related project costs. Providence Water representatives told the committee they are seeking authorization for a third tranche of funding and said the likely funding package includes 20-year financing with a 0% interest component and roughly 49% principal forgiveness under the federal infrastructure program used for lead service replacement.

Committee members asked where the third tranche would be spent and how residents are being notified. Providence Water said the tranche has not been designed yet but that the program has prioritized areas with high concentrations of lead services; the utility listed work already completed in parts of Ward 13, Ward 9 and sections of Wards 10 and 11 and said outreach has included mailings, phone calls and community meetings. Councilors pressed staff on outreach gaps after residents reported not receiving follow-up after community meetings; staff asked constituents who believe they were missed to contact the program manager, identified in the meeting as Chris Hunter.

Officials said the federal money flows through the state infrastructure bank and that availability of future tranches is not guaranteed; committee members and Providence Water staff urged residents to sign releases of entry (ROEs) promptly so properties can be scheduled when funds are available. The utility also told the committee that the financing will be incorporated into the utility’s capital plan and rates and that the current financing request will not, as submitted, increase customer rates beyond amounts already assumed in the utility’s rate filings.

Committee members representing neighborhoods with low uptake asked about landlord participation; Providence Water staff said owner-occupied homes have higher participation rates while landlord engagement remains a challenge and noted prior community outreach and mailings increased participation to roughly the high 60s–70s percent among homeowners in some project areas.

After discussion, Councilor Taylor moved and the committee voted in favor of recommending approval to the full council.

The ordinance will go to the full City Council for final action.