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City seeks $1 million SRF loan to investigate service‑line materials; staff reports 11 lead lines found
Summary
Staff proposed a $1 million State Revolving Fund loan to fund further investigations of unknown water service lines, including purchase of a second vacuum truck; staff said the state approved the loan with up to 25% principal forgiveness and a 0% interest rate and reported 11 identified lead service lines among roughly 5,500 accounts.
City staff asked council to support a State Revolving Fund loan package to fund an expanded inventory and investigation of water service‑line materials. Staff said the application requests $1,000,000 with roughly $750,000–$850,000 to purchase a second vacuum truck for potholing and inspections, and up to $250,000 to reimburse city staff costs for investigation work.
Staff told the council the State Loan and Investment Board approved the loan package and that the terms include eligibility for up to 25% principal forgiveness once repayment begins and a 0% interest rate over a 10‑year term. If the city used the entire $1,000,000 and received the maximum forgiveness, staff said the net principal could be $750,000 with an estimated repayment of about $75,000 per year over 10 years.
On inventories, staff reported the city has about 5,500 utility accounts, with roughly 2,700 service lines previously classified as unknown; staff said inspections to date have identified 11 lead service lines in the city, with at least two clustered near Circle Drive. Staff recommended bringing the loan agreement forward to the council for formal approval on Feb. 17 so the city can proceed with vehicle procurement and further investigations.
