Dubuque moves to correct lead-service-line loan shortfall

Dubuque moves to correct lead-service-line loan shortfallDubuque City Council has set an October 19 public hearing on a supplemental $11,000 water-revenue loan for the Phase II private lead service line replacement pilot. The additional borrowing would bring the programme's total authorised SRF loan amount to $2.071 million.

Council unanimously set an October 19, 2026 public hearing on the supplemental $11,000 Water Revenue Capital Loan Notes issue.

The fee was inadvertently excluded from the original $2.06 million SRF construction application and September 21 public-hearing amount.

The Phase II project is to be financed through Iowa SRF and the Water Construction Fund because certain private portions of the work are ineligible for SRF reimbursement.

The SRF loan is stated to carry 2.85% interest plus a 0.25% servicing fee, mature on June 1, 2046, and include forgiveness of 49% of construction costs.

Dubuque City Council has initiated a correction to the financing package for Phase II of its Private Lead Service Line Replacement Pilot Program, setting an October 19 public hearing on an additional $11,000 of Water Revenue Capital Loan Notes through Iowa's State Revolving Fund programme. The supplemental borrowing is intended solely to cover a loan initiation fee that was omitted from the original State Revolving Fund construction application and the public-hearing amount. The council had previously held a September 21 public hearing on borrowing up to $2.06 million for the project. If approved after the October 19 hearing, the additional borrowing would raise the total not-to-exceed SRF loan amount to $2.071 million. The October 5 resolution to set the hearing passed unanimously, 7-0. City staff said Phase II will use both Iowa SRF and Water Construction Fund sources. The split is required because certain private portions of work needed to complete the programme are not eligible for reimbursement through the Iowa SRF programme. According to the finance memorandum, the SRF loan has a 2.85% interest rate, a 0.25% servicing fee and a June 1, 2046 maturity date. Forty-nine percent of construction costs are forgivable, and the debt will be abated from the water fund. The public hearing will take place at 6:30pm on October 19 at the Historic Federal Building, where the council will consider entering into the additional Water Revenue Loan and Disbursement Agreement. The proposed debt would be payable from net revenues of the municipal waterworks utility rather than from taxation.