Owensboro approves up to $1 million assistance agreement for OMU lead service line inventory

On Sept. 3 the Owensboro Board of Commissioners approved Municipal Order 26-2024, authorizing an assistance agreement between Owensboro Municipal Utilities (OMU) and the Kentucky Infrastructure Authority for up to $1,000,000 (project F24-055L). The funding will support OMU's lead service line inventory work required by state and federal rules.

City manager explained that because OMU is structured as a separate utility commission, the city must approve the OMU debt instrument even when the assistance is forgivable. "This municipal order approves an agreement between Owensboro Municipal Utilities and the Kentucky Infrastructure Authority, allowing OMU to receive a forgivable loan," he said, and added that the city has no obligation under the agreement as long as OMU complies with the funding terms.

Tim Lyons, OMU general manager, described the project and its customer impact: "We do not anticipate finding any lead, but at least we are required by the state and federal law to comply and to do an inventory. This is a win-win because we will, if there's anything out there, we will find it and replace it. And second of all, this has no expense to our customers." The commission approved the municipal order by voice vote.

Officials said the assistance is structured as a zero-interest, refundable loan that can be forgiven if OMU meets the program terms. OMU staff were on hand to answer questions about project scope and compliance.