Aid_Content Page_Intermunicipal agreements for the SDWLP

Intermunicipal agreements for the SDWLP

Sections NR 166.10(2)(h) and NR 166.11(1)(g) of the Wisconsin Administrative Code provide that an intermunicipal agreement is necessary when either:

  1. an applicant municipality's water is obtained from facilities of another municipality; or
  2. another municipality is obtaining water from the applicant's facilities.

The intermunicipal agreement is a contract between two or more municipalities, which defines the responsibilities of each municipal entity. The Safe Drinking Water Loan Program (SDWLP) reviews the conditions of the contract to assure the conditions are consistent with the requirements of statutes and administrative code.

The final executed intermunicipal agreement must:

  • identify ownership for each individual portion of the water system;
  • establish the term of the agreement;
  • demonstrate the basis for generating revenue for operation, maintenance, depreciation and tax equivalent costs based on actual use, and state who is responsible for paying for these charges;
  • indicate the method for generating revenue for capital costs and who is responsible for payment;
  • indicate that the owner of the regional facility shall provide the applicant's water; and
  • require that each entity adopt a user fee system and water use ordinance, if applicable.

Read more about the specific requirements for intermunicipal agreements.

Code Revision

All applications submitted November 1, 2023, and later must follow the current Wisconsin Administrative Code. Applications submitted prior to November 1, 2023, must follow the former Wisconsin Administrative Code. Links to both the current and former versions of the codes are available on the DNR Environmental Loans’ Statutes and Administrative Codes page.

Additional Documentation

Beginning with State Fiscal Year 2025 financing, if a project serves more than one local governmental unit, the DNR may request additional information regarding ownership and maintenance responsibility of the water system than the information provided by the applicant in or with the SDWLP application for financial assistance.

Note: Effective with State Fiscal Year 2025 financing, the SDWLP allows an applicant municipality to submit any type of written agreement to document hookup charges rather than an intermunicipal agreement.

Contact information
For information on this topic, contact:
Noah Balgooyen, SDWLP Coordinator