Commission staff presented a draft reimbursement resolution on Dec. 2 to enable use of 2026 Safe Drinking Water loan and principal‑forgiveness funds for the city’s lead service‑line replacement work.

Staff said the DNR’s draft allocation to the city totals $18,979,000; staff described approximately $11,000,000 of that as potential principal forgiveness and the remainder as a loan to be structured as revenue/general obligation bonds. Staff noted that final figures from the DNR remain pending and will be confirmed in the coming weeks.

Commissioner Hadley moved to recommend approving the reimbursement resolution and Commissioner Gellhar (listed in the minutes as Gellhar/Gellar) seconded. The commission approved the recommendation by voice vote. Staff said the item will go to the finance committee on Dec. 9 and is likely to appear before the city council in January for final action.

Staff framed the resolution as a standard housekeeping step that allows the city to be reimbursed for eligible work performed in 2026 before loan closing and to align financing structure with DNR requirements. Staff also confirmed the DNR loan carries a low interest rate (cited as 0.25% in the meeting) and that the package will include both loan and principal‑forgiveness components.

Next steps: finance committee review on Dec. 9, then council consideration in January. Final award and the exact forgiveness/loan split will be set by the DNR and finalized in subsequent documents.