IRON MOUNTAIN — A potential water system project will be identified over the next few months as Iron Mountain hopes to secure state or federal aid for work that could take place in 2024.

The city faces a cost roughly estimated at $9 million to replace all lead service lines by 2041. While loans are available, City Manager Jordan Stanchina believes the prospects for grant assistance are dim.

“I will continue to monitor and watch for criteria changes that may make us potentially eligible,” he told the city council this week. The city will find it difficult to qualify for grants because its median household income is too high and its utility rates are too low, he explained.

“Unfortunately, at this time it looks like there will be little to no principal forgiveness available,” he said.

Guidelines from the Michigan Department of Environment, Great Lakes, and Energy call for a letter of intent by November for projects that would be funded in 2024. The U.S. Department of Agriculture Rural Development is among the possible grant sources.

“The letter of intent doesn’t require you to move forward with a project but is the only way to enter into the process and potentially be eligible for principal forgiveness,” Stanchina said.

The council will have city staff draft a project plan before the November deadline.

Iron Mountain has up to 1,800 lead “goose neck” connections that must be replaced under a 2018 state order, even though its water has tested safe. As of this spring, 72 lead lines have been replaced.

In other action, the council:

— Will allow a parking lot closure at the intersection of East Hughitt and Iron Mountain streets for a “Pumpkin Walk” event from 10 a.m. to 5 p.m. Saturday, Oct. 29. The Downtown Development Authority is planning the Halloween event in cooperation with First National Bank & Trust.

— Approved a quote from Delta Fence & Construction of Escanaba for fence repairs at three locations totaling $6,503. Of that amount, $3,104 is related to a rollover accident on Park Avenue that will be billed to the driver’s insurance. Friends of City Park will pay the $1,241 cost for repairs to the park’s deer pen fence, Mayor Dale Alessandrini said. The remaining work is for ice storm damage at the Eastside Tennis Courts.

— Learned that a sinkhole formed recently in the police department parking lot on East Fleshiem Street, due to a deteriorated storm sewer. The construction, which appears to date to the early 1900s, will be replaced by the public works department, Stanchina said.