The Finance Committee met 06/26/2023.
One of the items they took up was a request to apply for a Safe Drinking Water Loan through the Wisconsin Department of Natural Resources. If awarded this money would be used to help pay for the replacement of private lead service lines. The committee voted 4-0 to approve the request.
I’ve prepared a transcript of the discussion for download.
Some of the loans awarded by the WDNR would qualify for principal forgiveness, but some would not. Alderperson Sheri Hartzheim (District 13) wanted to clarify that the city would only accept these loans if they included principal forgiveness and would not accept the loans if they did not have principal forgiveness.
Finance Director Jeri Ohman confirmed that was the case. “We’re applying for this loan with the hopes or the intention that we’ll receive the principal forgiveness. If we do not receive the principal forgiveness, we will not go through with the loan itself.” Her understanding was that at the time when the city was informed about the award amount they qualified for, they would also be told whether any portion of that award qualified for principal forgiveness. Once they received those terms, they did not have to agree to accept the loan and could decline any part of the loan that did not feature principal forgiveness.
A secondary part of the request before the committee was to approve a resolution declaring official intent to reimburse expenditures for loan disbursement payments. Director Ohman explained that that essentially just stated that if the city paid for any portion of the lead service line replacements prior to receiving the loan funds that it intended to reimburse itself for those expenses.
The committee voted 4-0 to approve the request to apply for the loan and approve the resolution.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1101378&GUID=FA34473A-2482-4BA0-8EA1-BCA60A736EE7
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