Public Hearing: YES ☐ NO ☒ Department: Watershed Management
SUBJECT:
Title
Commission District(s): All Commission Districts
GEFA Water and Sewer Loans
Body
Information Contact: Dora De Taboada and Maria Houser
Phone Number: 770-318-9232; 770-621-7244
PURPOSE:
To propose acceptance of Georgia Environmental Finance Authority (GEFA) Loan DWLSL2024001 in the amount of $16,481,000 and authorize the CEO to execute all necessary documents. GEFA approved our loan application, for the funding of Lead Service Line (LSL) inventory and replacement projects, November 14, 2024.
NEED/IMPACT:
The Environmental Protection Agency (EPA) issued the Lead and Copper Rule Revisions (LCRR) in January 2021. After its review of the LCRR, the EPA announced its intention to propose and finalize the new National Primary Drinking Water Regulation: The Lead and Copper Rule Improvements (LCRI) by October 2024.
why the item is needed. How will this item improve or sustain what your group currently does?
DeKalb County is committed to ensuring the safety and health of its residents by addressing the critical issue of lead service lines (LSLs) in the county’s water distribution system. Most of these lines are expected to be privately owned since the County has replaced all known lead pipes within the public system. Lead, a highly toxic substance, poses serious health risks, particularly to vulnerable populations, including children and pregnant women. Many older homes in DeKalb County, particularly in underserved communities, may still be connected to the water system via lead service lines, which can contaminate drinking water and adversely affect public health.
Securing GEFA funding for the lead service line inventory and replacement projects in DeKalb County will directly contribute to improving public health, promoting environmental safety, and ensuring compliance with federal and state water quality standards. By conducting a thorough inventory, the County will be able to precisely locate and assess the number of lead service lines in the system, enabling a targeted and efficient replacement strategy. The replacement of these lines will drastically reduce lead exposure, mitigate health risks, and enhance the safety of drinking water for county residents.
Additionally, replacing lead service lines will strengthen community trust in the county’s water infrastructure, demonstrating a proactive approach to public health and environmental protection. This initiative will also support long-term sustainability of the water system by modernizing infrastructure and reducing future maintenance costs associated with older pipes.
Ultimately, GEFA funding will empower DeKalb County to eliminate the public health risks associated with lead in drinking water, improve the county’s compliance with the Safe Drinking Water Act, and foster healthier, safer communities for current and future generations.
The loan is to ensure the County complies with LCRR requirements.
FISCAL IMPACT:
GEFA’s one-time fee is approximately $247,215. An interest rate of 4.25% will be incurred for draws made during the construction period ending April 1, 2029.
Once all the funds have been withdrawn, the interest rate falls to 2.25% resulting in a monthly payment that will approximate $85,500. The loan is 20 years.
RECOMMENDATION:
Recommended Action
To approve the GEFA Loan DWLSL2024001, appropriate the funds for the lead lines inventory and replacement, and authorize the Chief Executive Officer to execute all necessary documents.