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Kalispell council approves SRF-eligible program to replace lead and galvanized service lines
Summary
Council adopted Resolution 6239 authorizing the city to fund and oversee replacement of identified EPA noncompliant lead and galvanized service lines to qualify for Montana SRF loan forgiveness; council described a roughly 60/40 funding forgiveness split during discussion.
The Kalispell City Council on Jan. 21 adopted Resolution 6239, authorizing the city to fund and oversee a program to replace identified EPA‑noncompliant lead and galvanized water service lines and to qualify for the State Revolving Fund (SRF) loan forgiveness program in Montana.
Staff said the resolution also includes a one‑time exception allowing the city to replace street‑side service lines discovered during main replacements. That flexibility is intended to ensure the project can capture service lines found during scheduled water‑main work.
During discussion councilors repeatedly cited the SRF terms, noting the state program typically forgives approximately 60% of eligible project costs with the remaining 40% carried at a favorable interest rate. One councilor said the program "forgives 60% of it" and characterized the remaining share as a generous financing opportunity that compares favorably with otherwise uncovered costs.
Councilors also noted that when a lead service line failure or main replacement occurs as part of regular work, the city would already replace the line to the property boundary. Several members said that the SRF program presents an opportunity to accelerate replacements and "get ahead of the game."
The resolution was moved and seconded (mover/second not specified in the meeting record provided) and approved by unanimous roll call. Council requested staff follow normal SRF application and procurement procedures and to report back on program design and cost estimates.
What's next: Staff will prepare an SRF application and program implementation plan, identify properties with noncompliant service lines in the city's inventory, and present financing and scheduling details to council.
