Norway council approves $7 monthly water fee, adopts planning document tied to state lead-service-line grant application

The Norway City Council on April 27 approved a $7-per-month water charge intended to fund work related to replacing lead water service lines and adopted a final project planning document that ties the city to a state revolving-fund application.

City staff told council members the state application requests $3,480,750 and is calculated to replace about 350 lead service lines, a figure the presenter said represents roughly 51% of the city’s current need. "As of right now, the application is written for $3,480,750 that is calculated to hopefully replace 350 lead service lines throughout the city," a staff member said during the public hearing.

Councilors discussed how much of the work would be grant-funded versus loan-funded. A councilor described the broader cost estimate for full replacement across the city as "around $7,000,000 over 10 years" and noted that the state and federal programs change terms from year to year. Staff explained that, under a 30-year loan scenario, a 100% loan would amount to about $8 per residential user per month; the new local fee was structured to cover part of that cost.

Councilors and staff also warned residents the replacements will be disruptive: the project will require access to many private yards, potentially remove landscaping and sidewalks, and likely leave asphalt patches rather than full paving because the program covers only direct water-service impacts. “We’re gonna ask to go on a lot of private property,” the staff member said, adding that the program covers direct water-service impacts and not full street repaving.

The adopted resolution amends the general utility-service rate schedule by adding a monthly lead-service-line fee and removing certain cable/internet/phone charges previously included in the schedule. The council voted to approve the rate change and the planning-document resolution in separate motions during the meeting.

If the state application is successful, staff said awards are typically announced in the fall and the loan closing would happen the following summer; full principal payments would likely begin several years after the project starts. Staff and council emphasized the city will continue to seek grant funds to reduce the local share.

The council closed the public hearing with no members of the public speaking on the item and moved to the next agenda items.