Jun. 17—SUPERIOR — Lead service lines in the city must be replaced, but the question as to how to pay for it remains undetermined.
Superior stands alone in Wisconsin as the only community ineligible for financial assistance because the city’s water utility is owned by a private company. In Wisconsin, the Department of Natural Resources administers the distribution of federal funding. Only municipalities are eligible for the Safe Drinking Water Loan Program.
Superior Water, Light & Power officials say they are ready to apply for funding by the June 30 deadline; however, it would require a change in state law that goes before Wisconsin Assembly next week, according to Rep. Angela Stroud, D-Ashland. The measure to allow
SWL&P access to federal funding
was already approved by the state Senate.
Stroud held a town hall meeting Monday, June 16, to hear from constituents in Superior to guide her vote next week.
“We know that some Republicans in the Assembly are opposed to it because they’re opposed to giving public money to a private company,” Stroud said. “Democrats are very torn … because it’s a private for-profit company that’s taking a limited pool of money.”
Stroud said she strongly opposes giving public money to a private company but could be persuaded to vote in favor of the bill if amendments were made or the city and company reach an agreement so customers could replace lead service lines at no cost to them.
About
700 SWL&P customers
have lead service lines, and 1,200 remain unknown after an inventory of lead service lines was completed last year.
“The city and the company are discussing a framework whereby if we pass this legislation, the 75% will be covered by the federal funds and the city will cover the other 25%, matching what’s happening in municipalities throughout the state,” Stroud said. “I feel great about this because your cost of replacement would be zero. And that satisfies one of my goals, keeping as much money in your pocket as possible.”
Resident Pattie Soliday asked if the city would rely on property taxes for its portion.
Mayor Jim Paine said the city undertakes a lot of infrastructure projects each year, and the lead line replacements are within the scope of a major street project. He said that when the Blatnik Bridge closes, the city won’t be able to do major projects because of traffic congestion, which would free up millions of dollars of infrastructure money that could be dedicated toward lead line replacements.
Originally, Stroud said her goal was to amend the bill so only SWL&P customers would have access to forgivable loans. But now she’s exploring other ideas because that wouldn’t solve the problem of the cost of replacing utility-owned pipes being passed onto consumers. SWL&P has about 3,800 known lead lines and another 800 are unknown.
“Given the business model of utilities, if we don’t open up the pot of money, and they have a 10-year, now nine-year, timeline to replace all lead in their system, they’re going to be doing that, and you’re going to be paying for it,” Stroud said. “So, I struggle with that.”
If the city seeks to
acquire the water utility,
Stroud said her office will draft a letter stating “firm opposition to the use of any public money to inflate the value of the utility.”
“Another element of the deal in progress: The president of the company has drafted a statement and sent it to me that they will not profit from public money in terms of customer rates,” Stroud said. “I don’t know what kind of guard rails that means for the (Public Service Commission), but I’m happy to submit it to the city as part of a rate case.”
Former councilor Jenny Van Sickle, who has been working on the lead service line issue for three years, said those protections should be written into law.
“It’s really disappointing to be a city in this situation,” Van Sickle said.
“Without those legal protections, I’m not happy, but so far in this deal, I think the city and I and the company aren’t happy, and usually that means you’re close to a compromise,” Stroud said.
“It’s the old … don’t let the perfect be the enemy of the good,” said Joe Radtke, of Superior. He said the reality is Superior doesn’t have a lot of options.
“Philosophically, I am so opposed, and yet I’m also opposed to you all not getting access to funds that will cover the cost of replacement,” Stroud said. “… I hope we figure out the best way forward.”
Stroud encouraged people to contact her with further feedback at 608-237-9173 or