Bayonne introduces $13 million bond ordinance to replace lead water service lines; public hearing set for March

The Bayonne Municipal Council on Feb. 19 introduced a bond ordinance allocating up to $13,000,000 to finance a citywide program to replace lead water service lines and set a public hearing and final passage for a March council meeting.

City staff explained the program as part of a state mandate to remove lead lines from the distribution system and from service lines between mains and customer meters. According to staff remarks during the Feb. 19 meeting, the city has identified roughly 8,000 houses with lead at the meter connection; for about 10,000 service lines the city does not yet know whether lead exists between the curb and the main and will investigate those segments as part of the program.

A staff speaker asked the council to borrow funds via a loan from the New Jersey I-Bank Infrastructure Trust Fund; he said the loan could qualify for 50–80% forgiveness under the program's terms. "This money will be a loan from the New Jersey I Bank Infrastructure Trust Fund. There's loan forgiveness between 50 80%." He told the council replacement work at individual homes could cost between $7,000 and $15,000 and would be done at no cost to eligible homeowners; the city will recover its debt service through a pass-through to utility rates.

At the introduction the council voted to schedule the public hearing and final passage at the March meeting: Councilmember Booker: Aye; Councilmember Carroll: Aye; Councilmember Perez: Aye; Councilmember LaPalouse: Aye. Councilmembers said they expected the program to be phased; staff said the full replacement timeline under the state mandate is eight years, though the speaker expressed hope the work could be completed sooner.

What the ordinance would do

- Appropriate up to $13,000,000 for an initial phase of a lead service line replacement program. - Authorize issuance of notes/long-term borrowing and use of loan funds from the New Jersey I-Bank Infrastructure Trust Fund. - Provide replacement at no direct cost to homeowners where lines qualify; costs estimated by staff at $7,000–$15,000 per service line replaced.

Quotes

"This money will be a loan from the New Jersey I Bank Infrastructure Trust Fund. There's loan forgiveness between 50 80%. So we're saving money there," — staff speaker (identified in the meeting as "Mr. Nichols").

Ending

The council introduced the ordinance and set a public hearing for March; the final appropriation and any program details (timing, prioritization by neighborhood, homeowner eligibility rules) will be resolved at the March hearing and during subsequent administrative rulemaking and project planning.