Miles withdraws DWSRF lead-service-line application after council finds the offer not cost-effective

City staff told the Miles City Council on Sept. 4 that a Drinking Water State Revolving Fund (DWSRF) webinar on Aug. 13 indicated Miles had been allotted $50,000 for lead-service-line replacement but that program terms left the city with borrowing obligations and unclear engineering and administrative costs.

According to the clerk's report, of an example $30,000 construction cost the DWSRF forgiveness portion might cover 49 percent for disadvantaged communities, while the remaining balance could be offered at a 0% interest loan; however, additional fees and the cost of creating a plan (to be completed by ECIA) and hiring an engineer to design each replacement line could increase total city costs. The clerk and Theresa Enright from the DNR (as referenced) concluded the net financial outcome made acceptance unattractive for Miles, which has approximately 10 lead service lines. The council voted unanimously to withdraw the city's DWSRF application.

Councilmember N. Voss moved to withdraw the application and B. Volquardsen seconded; the motion passed unanimously. Council discussion noted that the federal/state compliance deadline for replacing lead service lines extends to 2037, allowing the city to replace lines incrementally without accepting the current offer.

The clerk said staff will continue to track available funding and prepare plans as appropriate. The council also approved Resolution 2024-24, approving the city's Urban Renewal Report for the fiscal year ending June 30, 2024, during the same meeting.