Norway City Council weighs separate $3–$7 monthly fee to fund lead service-line replacements

At its meeting, the Norway City Council discussed a staff proposal to create a separate water fee to fund replacement of lead and galvanized service lines, a program staff estimated could cost roughly $7,000,000 and affect about 700 residential service lines.

Dan, a city staff member who presented the plan, said the city has completed inspections required by the lead and copper rule and that the project could be phased. He told the council the city is applying for a first-phase $3.5 million state application and that, depending on state review, the city might receive a 50% grant award for that phase or a low‑interest loan. He described per-line replacement estimates ranging from about $7,000 to $10,000 and showed examples of possible flat monthly surcharges the council could consider, including $3.05 or $7 per customer.

“An increase of about $7 a month would generate roughly $10,000 a month,” Dan said, adding that the fee would be a separate line item so customers know it is specific to service‑line replacements. He also noted that some lines with leaks or breaks must be replaced immediately while the city awaits funding.

Councilmembers pressed staff on the project timeline and the city’s likelihood of securing grant funding. One councilmember calculated that a $7 monthly fee would cover only about 20–25% of the project cost over 10–11 years and urged the council to explore worst‑case financing options. Staff said the replacement schedule will likely begin in 2027 under a federal and state timeline that now limits the replacement window to about 10 years.

Council members raised concerns about how the state aggregates household median income with township figures — a method staff said could make Norway look less eligible for grant funding because higher‑income areas in the township are combined with Norway’s median income. “If it was just the city of Norway, it'd be better,” Dan said. Councilmembers warned that combining township figures could push the community into loan territory rather than grant funding.

Several councilmembers said they do not oppose replacing lead lines but worry about the local cost burden. Mayor said, “I feel sorry for the citizens and the people of the town,” and urged residents to contact state and federal representatives. Council discussion noted options including bonding, a voter referendum, or applying for state low‑interest loans; several members said they would continue researching available state and federal programs.

Staff also described the administrative requirements: the city must secure easements for each service line, perform engineering work for replacements, and hold a statutory public hearing before adopting any rate change. No formal vote on a rate increase occurred at the meeting; staff said the item will return as an action item after additional research and public outreach.

The council asked staff to refine the city’s current counts and sample sizes from inspections so the council has firmer cost estimates before any public hearing. Dan committed to providing a definitive count and to continuing to pursue state and federal funding alternatives. The discussion closed with council consensus to keep the item on future agendas for updates.