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Council told VDH awarded Lynchburg $15 million for lead service-line program; CIP to be restored after rate action
Summary
Staff told council a $15 million award from VDH includes $7.5 million in principal forgiveness for the city's lead service-line program, and proposed restoring previously deferred water and stormwater capital projects following the council's rate decision; first reading/public hearing set for July 14.
City utilities staff told the council on June 23 that the Virginia Department of Health (VDH) awarded Lynchburg $15 million for its lead service-line program; $7.5 million of that award is principal forgiveness, meaning the city would borrow $7.5 million rather than the $10 million initially anticipated.
Tim Mitchell, utilities director, said the award allows staff to increase the appropriation from $10 million to $15 million to match the VDH award and that the city will borrow only the portion not forgiven. He said staff will present project lists and details at the public hearing and second reading scheduled for July. Mitchell also explained that following council’s earlier decision on water and stormwater rates, staff proposes restoring 23 water capital projects and 15 stormwater projects to the capital improvement program.
Mitchell warned council that the VDH award assumptions (loan vs. forgiveness) changed the city's borrowing needs and that staff will provide the full project list at the hearing. He added this amendment would be the first reading tonight with a July second reading and public hearing.
The action returns to council for formal appropriation and final vote at upcoming readings.
