In response to a request from the Troy City Council, New York State Comptroller Thomas P. DiNapoli today issued an advisory opinion finding that the city could lawfully issue bonds in connection with financing the city seeks from the State Environmental Facilities Corporation (EFC) under a federal program to help fund its replacement of public and private lead water service lines without running afoul of the State Constitution’s prohibition on using public funds for private purposes.

“Exposure to lead from water service pipes is a public health crisis that poses serious risks to New York's children and needs to be immediately addressed. Our legal opinion is that the City of Troy’s proposed bond issuance to address this public health threat is constitutional and authorized by State law,” DiNapoli said. “It is encouraging that New York state and its local governments are taking action on this serious issue facing communities across the state.”

Assemblymember John T. McDonald III, RPh said, “I appreciate the opinion issued today by our State Comptroller Thomas P. DiNapoli regarding the request from the City of Troy for clarification regarding the use of public funding to address lead service line replacement as it relates to the funds announced by Governor Hochul earlier this year and supported in the state budget through the Environmental Facilities Corporation and the federal Bipartisan Infrastructure Act. In 2023, during the state budget process, the Legislature worked closely with the Executive to include language in the budget to guide local  governments as they work to replace all lead service lines connected to residential services throughout New York State due to the public health risks. The Comptroller's opinion supports those efforts and should address any outstanding concerns. We will continue to work to remove possible barriers and appreciate the attention to this critical matter.”

"I am grateful that the State Comptroller's opinion crystallizes the guidance state lawmakers and EFC have provided the City of Troy, and I'm eager to see this work begin immediately. The bipartisan commitment state, federal, and municipal representatives have made to solving this public health, public safety and environmental crisis is truly significant. In the Senate, I'll continue to work across the aisle to deliver the funding we need to revitalize our clean water infrastructure across the state," said State Senator Jake Ashby.

“No parent should have to fear what comes out of their tap, and I’m proud that our initiative has helped address this issue for Troy and municipalities across the state by unlocking millions in state and federal funds,” said Troy Mayor Carmella Mantello. “We have already replaced over 350 lines and have an ambitious plan to replace all lead pipes within the next three years. With this decision in place, we will immediately seek multiple contractors to accelerate the replacement of lead service lines as quickly as possible. We want to thank our team, the Council and the State Comptroller’s Office with this opinion, for helping Troy continue to lead the charge toward eradicating this public health hazard.”

“We are grateful for the opinion from the State Comptroller confirming our ability to bond for replacement of residential lead services lines in Troy at no direct cost to taxpayers,” said Troy City Council President Sue Steele. “Residents expect to see real progress on this critical effort, and the city council will continue to prioritize the replacement of lead service lines to protect the health of Troy families. We are grateful for the response from Comptroller DiNapoli’s office on this critical issue facing local communities like Troy.”

Troy’s Department of Public Utilities provides water to more than 50,000 residents, plus industrial and commercial customers through over 13,000 service connections. Many of the older buildings still have lead service lines and testing confirmed dangerous lead levels in multiple samples. Lead contamination can cause serious health problems and is particularly dangerous for pregnant women and children aged six and younger.

The city plans to pay for the replacement of public and private lead water service lines, using federal and state funds. According to the city, as part of the financing, it would issue bonds at no interest for nearly $3.9 million to be purchased by the EFC. Governor Hochul recently announced that Troy was awarded a state grant in the same amount, which in turn would cover the full amount of the city’s financing costs.

Advisory Opinion 
Legal Opinion of the New York State Comptroller's Office