by Kolby LaMarche

The Burlington City Council voted unanimously Monday night to authorize a $1.8 million state loan for replacing aging water mains on three city streets next year.

The resolution, recommended by the Board of Finance on November 17, allows the Department of Public Works Water Resources Division to borrow up to $1,808,000 through Vermont’s Drinking Water State Revolving Fund (DWSRF) for the 2026 Water Distribution Improvements project.

Council members waived the reading of the resolution and adopted it without discussion during their December 1 meeting, according to city records. The vote clears the way for the city to apply for the funds and proceed with bidding.

The project targets about 2,500 feet of water main on Pine Street from Home Avenue south to the Champlain Parkway limits, Summit Street between Main Street and Maple Street, and the full length of Bennington Court.

Bennington Court work must wrap up in 2026. The Pine Street and Summit Street portions could move to 2027 if it leads to lower contractor bids, though the city plans to package all three for a single bid process.

The pipe replacements will draw from the $7.25 million water bond that voters approved in March 2025 as part of the Sustainable Infrastructure Plan. This marks the bond’s first use for water main renewal.

DPW chose the locations using asset management criteria, including pipe age, past breaks, system importance and alignment with planned street paving. Pine Street will get full-width paving in the same contract using separate Street Capital funds. Summit Street and Bennington Court are lined up for full paving under the city’s standard program soon after.

DPW opted for the DWSRF loan over cash payments or pricier bonds. The program offers 0% interest, a 2% administrative fee, 30-year terms and no repayments until one year post-construction. Annual debt service is projected at $80,816.

The loan covers an estimated $1,583,000 in construction with 20% contingency, plus up to $225,000 for engineering oversight from a resident consultant and city staff.

The exact loan amount will match the lowest bid. Bidding starts after the state verifies DWSRF compliance, including environmental reviews and a water construction permit.

DPW plans to seek Board of Finance and City Council approval next year to award the construction contract once bids are in.

Water Resources staff noted that the five-year rate plan tied to the 2025 bond already factors in this debt and the limited rate hikes needed for repayment, starting no sooner than fiscal year 2028.

With approval secured, the city can secure the current loan terms and advance to final design and bidding in early 2026.