Council OKs using water-utility reserves to cover homeowners' costs for lead-service-line replacements

The Watertown Common Council on April 6 approved a pair of resolutions to transfer and accept excess water-utility funds so the city can cover homeowner costs arising from the current round of lead-service-line replacements.

Alder Arnette, speaking for the Public Works Commission, described the history: "Under President Biden's administration, a mandate was put in requiring removal of lead service lines in communities. There were federal dollars and state dollars that were put into play in the first round of these removals ... All of it was covered by those state and federal dollars. When the second round of this came around, the state did not put the same money into it, and there was a gap left." Arnette said the commission pursued a solution so homeowners would be treated equally.

Council and staff discussed scale and cost. Arnette said the commission identified nearly 600 homeowners who could be affected and that potential homeowner contributions would vary by location (some homeowners could face 25%–50% of a bill while others would pay nothing). Council member Berg asked whether the transfer — described in discussion as approximately $1.255 million in the meeting exchange — would be reimbursed later through grants. City staff answered that no reimbursement is expected and that the city would absorb the cost, and that the Public Service Commission will review the utility’s financial position at the next simplified rate case cycle (noted in discussion as 2030).

A city staff member summarized the effect: "It will be a loss from the water utility" and added that the utility cannot recover the expense through a rate increase at this time. Council members praised the effort of the water systems manager, Pete Hartz, who was credited with pursuing legal and administrative paths to deliver a solution for homeowners.

The council voted to transfer and accept the excess utility funds; motions carried and were recorded by the clerk. City staff said the action should relieve homeowners who had received state-required notices that suggested they may face a cost for replacements.

The resolutions were sponsored by the finance committee and the Public Works Commission and passed on council votes during the April 6 meeting.