Council approves Young/Bell wellfield operating agreement and advances PennVEST debt ordinance first reading

Lock Haven City Council approved an operating agreement for the Young/Bell Wellfield and advanced a first reading of an ordinance that would authorize a PennVEST loan for water‑system improvements.

Staff told the council the operating agreement was developed collaboratively with the water filtration authority and is already signed by that authority; council approved the agreement so the project’s operational and contracting steps can proceed.

A legal presenter introduced Ordinance 2026‑04 on first reading, describing it as a debt ordinance prepared in connection with the city's PennVEST funding offer for water‑system improvements at the Young/Bell Wellfield. "The principal amount of your guaranteed water‑revenue note is $9,787,677, which is consistent with what the funding offer from PennVEST represents," the presenter said.

The presenter described the security required by PennVEST as a pledge of water system revenues and the city’s full faith and credit, and explained that a self‑liquidating debt report prepared by the city’s engineer will eliminate the borrowing from the city's statutory borrowing capacity for state‑law purposes if the revenues show sufficiency to repay the debt.

Council approved the first reading and will receive a second reading and closing actions at a future meeting. Members thanked staff and partners and noted the loan is a significant step to move reservoir and transmission projects forward.

"We've been incredibly long coming, and if we can't do the rest of the reservoir projects if this isn't done," a council member said, adding the action allows the city to move to construction and implementation steps.

Council’s action at the meeting was approval to proceed with the operating agreement and to advance the PennVEST ordinance to its next required reading and closing steps.