Council accepts PennVest funding offer for lead service line replacements
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Summary
Council approved a PennVest financing package — a low‑interest loan and grant — to replace identified lead service lines, with a loan component of about $756,130 at 1% for 30 years and a grant of roughly $953,200 covering most of the project cost.
Lancaster City Council on Nov. 25 approved legislation to accept a PennVest funding offer to replace identified lead service lines in the city, combining a low‑interest loan and a sizeable grant to cover the bulk of project cost.
Councilor Royo said the ordinance is the second reading of a PennVest loan package for lead service line replacement with a total project cost of about $1.7 million. "This is the second reading for a PennVest loan for the lead service line replacement with a total cost of $1,700,000," Royo said.
Daryl Peck summarized the PennVest offer: a guaranteed water revenue bond with a loan component of $756,130 (30‑year term at 1% interest) paired with a grant of approximately $953,200 that does not require repayment. Peck said the city has already received the PennVest funding offer and that construction bids have been received and will be awarded in December, with anticipated construction start in January and an estimated completion date in December 2026.
Director Campbell characterized the work as mostly compliance‑driven — identifying and replacing lines already flagged under the lead and copper rule — and said the PennVest terms were favorable. Council moved, amended (to attach exhibits such as the form of bond and amortization schedule) and then approved the ordinance by roll call.