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Kenosha utility to engage bond counsel to access Safe Drinking Water loan for lead service-line work
Summary
The Board approved engaging bond counsel and pledging future revenue as required by the Safe Drinking Water Loan Program after being awarded funding to replace lead service lines; staff said the utility’s funding application includes both public- and private-side work and the anticipated bond counsel fee is $20,700.
Kenosha utility staff told the Board of Water Commissioners on Feb. 10 that the utility has been awarded Safe Drinking Water Loan Program funds to support lead service line replacement and that it must engage bond counsel and pledge future revenue for the loan component of the award.
A utility staff member said the city included both public- and private-side service line work in its application to maximize available federal dollars. Staff explained that the utility-side replacements are expected to be structured as an 80% loan and 20% principal forgiveness (20% grant on the utility side), and that a bond counsel engagement is required to prepare documentation for the Wisconsin Department of Natural Resources.
When asked, staff confirmed the bond counsel fee would be $20,700, based on an estimated bond amount of about $2,772,000. The board moved, seconded and approved the scope of engagement for bond counsel by voice vote.
Staff emphasized that the board will need to adopt a resolution and pledge future revenue to secure the loan; engagement of bond counsel is meant to ensure the utility meets the Department of Natural Resources’ documentation requirements for that loan component.
