June 23, 2005

The Department of Environmental Quality has announced five new loan commitments today from the Clean Water State Revolving Fund (SRF) and five new commitments from the Drinking Water Revolving Fund (DWRF). Using federal capitalization grants and a required state match, the SRF provides low-interest financing for local units of government to make needed improvements to wastewater collection and treatment facilities, while assistance from the DWRF finances improvements to public drinking water systems. The loans are tendered through the Michigan Municipal Bond Authority. These ten loans total over $45 million.

The funded SRF projects include:

• $4,000,000 in assistance to the village of Clinton for the upgrade of its
  wastewater treatment plant and the replacement of major facility
  components.

• A $490,000 loan to Newaygo County for improvements to the village of
  Hesperia’s sewer system and wastewater treatment plant.

• A loan of $22,180,000 to Genesee County for the first of four projects
  to provide interceptor relief for the collection systems tributary to the
  Anthony Ragnone Wastewater Treatment Plant. The system serves
  24 communities in Genesee, Saginaw, and Shiawassee counties, and
  the relief sewers to be constructed will eliminate sanitary sewer
  overflows currently occurring during wet weather.

• $2,890,000 in loan assistance to the village of Baraga to finance
  treatment plant expansion and sewer system rehabilitation for the
  Keweenau Bay Indian Community/Baraga Joint Wastewater Authority.

• A loan of $2,200,000 to the village of Suttons Bay for the expansion
  and upgrade of its wastewater treatment facility.

These commitments bring SRF financing awarded to Michigan communities to date to over $2.1 billion. These recent projects are strong examples of the commitments being made by local units of government in Michigan to ensure protection of the state’s valuable water resources and the public health of its citizens.

The funded DWRF projects include:

• $510,000 to the city of Port Huron for the replacement of deteriorated
  water mains that have reached the end of their useful life.

• A $1,600,000 loan to Carson City for the construction of a new water
  storage tank and improvements to its water distribution system.

• $750,000 in loan assistance to Kalamazoo County to complete storage
  and transmission improvements to the village of Augusta’s water
  system.

• A loan of $4,520,000 to Marquette Township to construct new wells
  and storage facilities to ensure adequate capacity exists for system
  users.  The project also includes pump station improvements and the
  replacement of deteriorated water mains.

• $6,000,000 to Bay City for the upgrade of its water treatment facility,
  improvements intended to accommodate the handling of residuals from
  the city’s water treatment/softening operations.

The improvements financed by these loans will ensure compliance with the requirements of the Safe Drinking Water Act and protect the public health of system users in these communities. Since the inception of Michigan’s DWRF program in 1998, nearly $350 million in assistance has been tendered.

“As the wastewater and drinking water infrastructures in Michigan continue to age, the demand for assistance like that provided by the revolving fund programs will continue to grow,” said Director Chester. “It is an added bonus that these projects also stimulate construction activity, and represent a real investment in Michigan’s environmental and economic future.”

Program interest rates will remain well below open market rates, with Fiscal Year 2005 rates set at 1.625 percent in the SRF and the SWQIF, while the DWRF rate is set at 2.125 percent.

Editor’s note: DEQ news releases are available on the department’s Internet home page at www.michigan.gov/deq.

Revised June 23, 2005 by Pat Watson