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City told to complete lead-service-line inventory, apply for 66% grant window in 2026
Summary
Engineering staff briefed the commission on federal lead-and-copper rules requiring an inventory of service lines and on a 2026 state funding opportunity that would cover roughly 66% grant with 34% low-interest loan for line replacement. Staff urged the commission to identify unknowns now and apply for the funding this year.
The city’s consultant and staff told the commission that federal lead-and-copper rule revisions require municipalities to inventory service-line materials and that the state has opened a limited funding window (up to 66% grant, remainder low-interest loan) for replacement projects in 2026.
Why it matters: The inventory the city files in 2027 will be the basis for replacement responsibilities over the next decade; unknowns in the inventory are treated as lead and become replacement obligations. The state’s 2026 funding pot reduces the local financing burden for replacement, so staff urged the commission to close as many unknowns as possible now and apply this year.
What the city will do: AE2S and staff will continue the inventory process (door-to-door verification and potholing where needed) to reduce unknowns, then prepare loan/grant applications. The commission has a task order in place with the consultant to prepare the facility plan and loan application; staff will return with a resolution for the SRF loan application and the recommended grant application amount once the inventory and scoping are complete.
What’s next: Staff recommended applying for the maximum eligible grant this year to lock in the 66% cost-share and 0.5% loan remainder; unused funds can be returned to the state if not drawn. The commission asked staff to continue the inventory work and bring a formal SRF resolution back to the commission for approval when the dollar amounts are finalized.
