Lincoln Park Mayor and City Council on Dec. 8 approved a resolution authorizing an installment purchase agreement with Government Capital Corporation to fund the first phase of a citywide water‑meter replacement project.

City Manager Lisa told council the city has “just over 15,000 meters throughout the city” and said water loss has been “hovering around 40%.” Staff estimated the initial phase cost at roughly $3.3 million and annual debt service for that phase at about $420,000. Lisa said the city expects to recapture between $800,000 and $1.5 million in lost revenue once meters are replaced and readings improve. “It could even be a little bit higher, but that would be huge for the city to recapture that,” Lisa said.

The resolution designates the installment purchase agreement as a qualified tax‑exempt obligation for purposes of Internal Revenue Code Section 265(b)(3) and authorizes the city manager or designee to sign the agreement and necessary ancillary documents. Staff explained the $10 million figure in the agreement language is a ceiling for tax‑exempt obligations in the current calendar year, not the project price.

Council members asked about vendor testing and warranties. Lisa said current meters have been tested periodically and described the new meters’ warranty: a 20‑year warranty with a 10‑year full replacement guarantee followed by prorated coverage. Installation was described as a multi‑month effort; staff estimated a 10–18 month timeline for the phase approved and said the project may be financed in two components to stagger payments and revenue capture.

The council moved, seconded and voted on the resolution; roll call recorded affirmative votes from members present and the motion passed.

The city has begun outreach to residents; letters were mailed to notify them of the upcoming installations and instructions for downloading an app that will allow customers to monitor water use and potential leaks in near real time. Staff said some meters have already been installed and are being read manually by the supplier while the network software is finalized.

Next steps: staff will close the financing with Government Capital Corporation and begin procurement and scheduling for installation. The resolution names the city manager as the authorized signer for closing documents.