Lincoln Park approves financing to replace 15,000 water meters aimed at cutting roughly 40% system loss
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Summary
The City Council approved an installment purchase agreement to fund the first half of a citywide water meter replacement project intended to lower estimated water loss and recapture an estimated $800,000–$1.5 million in annual revenue.
Lincoln Park — The City Council on Thursday approved an installment purchase agreement that will finance the initial phase of a citywide replacement of roughly 15,000 water meters, a step city officials say is intended to reduce chronic water loss and improve billing accuracy.
City Manager Lisa Griggs told the council the city has been "hovering around 40%" water loss and that replacing aging meters is the most practical way to recapture lost revenue. Staff estimated a conservative revenue-recapture range of $800,000 to $1.5 million annually once the new metering is fully in place.
"This project will take some time to get that revenue back," Griggs said, explaining the administration sought to split financing into two components so the city need not make a full debt payment while installation is underway. The resolution authorizes an installment purchase agreement with Government Capital Corporation and designates the agreement as a qualified tax-exempt obligation for the purposes of the Internal Revenue Code (section 265(b)(3)).
Mayor Tobin and councilmembers pressed staff on cost and timing. The paperwork from the financing firm referenced an estimated project cost of roughly $3.3 million; staff said the $10 million figure referenced in the financing documents represents a ceiling for tax-exempt obligations in the calendar year, not the expected borrowing for this project. "They're stating that we won't issue $10,000,000 in debt for the year," Griggs said.
Tobin emphasized the age of the existing meters. "The meters are 15 years old," he said, adding that replacement is urgent because "the batteries for the meters that we currently have now are no longer being manufactured," which limits repairs and leads to estimated billing. Staff explained manufacturer warranty terms discussed during the meeting, noting a 20‑year warranty with a 10‑year full replacement and prorated coverage thereafter.
Officials said installation is expected to take roughly 10–12 months and that the financing structure includes an escrow of bond proceeds that can earn interest to offset initial payments. The council approved the resolution by roll call; all members present voted to adopt the agreement.
Council members and staff also discussed meter accuracy and vendor testing cycles. Staff said the city's meters are periodically tested and that initial pilot installations and samples have been completed; questions remained about the exact vendor testing schedule. City officials reiterated that the project aims to produce more accurate reads for residents and fewer estimated bills.
The council voted unanimously to approve the installment purchase agreement; the resolution designates the city manager or the city manager's designee as the authorized signer and authorizes ancillary documents needed to close the agreement.
The city's next steps include finalizing the contract with the meter supplier and beginning phased installation, with updates provided to the council as the project advances.
