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NEW ULM - The City of New Ulm is looking to replace over 70 lead water service lines through a Minnesota Public Facilities Authority (PFA) grant.
To start the lead pipe replacement, the New Ulm City Council approved the issuance of a temporary $1 million note to PFA ahead of the grant money’s arrival.
Finance Director Nicole Jorgensen explained that New Ulm Public Utilities received a commitment from PFA for a grant to replace the lead service lines in the city's water system, but it needed the $1 million note to start the project.
"The grant is $1 million, but it requires that we issue a temporary bill to cover the upfront cost," Jorgensen said. "Once the project is complete, we will repay that debt with grant funds. Anything in excess would not fall on the city."
There is no interest payable on this $1 million note.
Council President Andrea Boettger supported the project as a necessary step in updating New Ulm's infrastructure.
"It is an issue that many communities in our state and well beyond are dealing with now as we deal with aging infrastructure," Boettger said. "This will really help us offset our cost to do this work."
Boettger asked which waterlines would be prioritized for replacement.
City Manager Chris Dalton said lead lines near anything connected to children would be prioritized. This included childcare facilities and day cares. Next, the city would look to city infrastructure, followed by residential fixes.
He estimated 73 water lines that would be replaced with this funding, but further work would be needed before all lead lines were replaced.
"This is not going to fix all of our lead pipe replacement issues, but it is a very good start of something we need to be doing," Boettger said.
Councilor David Christian said after speaking with the finance director, he was comfortable with issuing the temporary $1 million note to PFA and made a motion to that effect.
Councilor Tom Schmitz seconded the motion, saying he was very glad the city was working on lead line replacement.