The City of Troy has gotten the green light from the state to issue bonds to replace lead pipes on private property.
New York State Comptroller Tom DiNapoli issued an advisory opinion on Wednesday finding Troy’s proposed bond financing for lead pipe replacement does not go against the state constitution.
In a statement, the Democrat said "the Gift and Loan Clause does not prevent municipalities from using public funds to replace privately owned lead water service lines on private and public properties" to remediate concerns over lead contamination.
The advisory pertains only to the city and its proposed project financing agreement with the State Environmental Facilities Corporation. The city wants to use nearly $13 million in federal funds through the Bipartisan Infrastructure Law, provided by EFC, which requires the city to deliver an obligation (a note or bond), pledging its full faith and credit to repay the principal. The package is in part a $3.9 million interest-free loan and an $8.9 million grant.
Democratic City Council President Sue Steele says she hopes the city moves quickly to continue its replacement efforts.
"This was a question we were being held up by bond Council who did not feel that public monies could be used for private property work, and so this clears the way for us," Steele said. "And you know, after nearly a year of stalled movement on the inventory and the replacement work, residents can now expect to see real progress on this critical effort."
The city has lagged in its efforts to inventory service lines, hovering around 50 percent. Republican Mayor Carmella Mantello has pledged to replace all contaminated service lines in her first four-year term.
The city’s water supply serves more than 100,000 residents across the cities of Troy and Rensselaer and the Towns of East Greenbush, North Greenbush, Brunswick, Schaghticoke, Poestenkill, and Halfmoon, and the Villages of Menands and Waterford.
Exposure to lead can cause developmental delays in children. The city is working with residents whose homes have increased levels by providing water filters.
The city has also received $3.8 million in state grants, which DiNapoli highlighted was “the precise amount required for the city to repay the amount borrowed from EFC.”
Rob Hayes, Senior Director of Clean Water with Environmental Advocates NY, says this decision should clear the way for municipalities across the state to move forward with bonding for lead pipe replacement projects.
“Troy's situation is the same as many other local governments across the state. There are dozens of other communities that are trying to access this federal, Bipartisan Infrastructure Law funding to get the lead out of drinking water, and we think that the argument that the comptroller made in their opinion are very relevant to these other communities who are seeking to access and use those funds,” Hayes said.
Hayes adds the backing from the state serves as a public health benefit.
“The most efficient and equitable way to get the lead out of drinking water is for the water utility to cover the full cost of lead pipe replacement, whether or not that pipe is public or privately owned,” Hayes said. “You know, for folks you know, living in low-income communities and communities of color, they might not have five to $10,000 to dig up a pipe that they didn't put into the ground. Folks are struggling to pay for groceries and medicine. They shouldn't have to pay to get the lead out of their drinking water.”
In a statement, Mantello said her administration “will immediately seek multiple contractors” to continue work. Greg Campbell-Cohen is a city resident and director with TIMBER, a public interest group in Troy. He says the city must now hasten its efforts.
“The mayor says that this is all she needs to immediately go out to bid for contractors to do lead service line replacement work, and we are going to hold her to that,” Campbell-Cohen said. “There has been a time where we were much more patient with the city of Troy, but the time for eight-month grace periods before seeing some action is over.”
So far, the city has replaced more than 350 of the thousands of contaminated lines.
