Ferndale plans decade‑long lead service line replacement; city estimates $35–$40 million and considers bonds

City water and sewer staff told council that replacing the remainder of Ferndale's lead service lines will be a large, multiyear capital effort and identified bonds as the most predictable funding route.

Staff said the water and sewer fund currently plans for an initial LSLR pace near 150 lines this year, but mandates and updated accounting assumptions mean the program must scale to several hundred replacements annually. "If we're doing 400 lead service lines a year, which is what we'll need to do from now until 2035 to be done by 2037, that's about 50% of that 30% split of capital just for lead service line replacement," the DPW director said.

The city presented a 10‑year cost envelope for the program ranging from roughly $35 million to $40 million depending on cost escalation and interest rates, and said it expects to issue bonds in FY28 to fund a first phase. Staff explained the fund structure today is heavily volumetric (about 90% volumetric, 10% fixed readiness‑to‑serve) and that future rate studies will examine shifting toward a higher fixed‑charge share to stabilize revenue for long‑lived capital.

Council asked about comparisons with nearby communities and the share of residential vs. commercial burden; staff said Ferndale's smaller commercial base means residential customers shoulder more of the program unless alternative funding is secured. No formal vote was taken; staff will return with a financing plan and rate‑study timeline.