June 12, 2006

Eight new loan commitments from the Department of Environmental Quality’s revolving fund programs were announced today as part of an effort to assist local communities in making needed infrastructure improvements. The eight loans announced today total over $34.5 million.

“Michigan continues to make unprecedented progress in protecting and enhancing our vast water resources,” said DEQ Director Steven E. Chester. “These loans represent a real investment in our communities, and our quality of life.”

The State Revolving Fund (SRF) and Strategic Water Quality Initiatives Fund (SWQIF) provide low-interest financing for local units of government to make needed improvements to wastewater collection and treatment facilities, while assistance from the Drinking Water Revolving Fund (DWRF) finances improvements to public drinking water systems.

The funded SRF projects include:

• $2,790,000 to the city of Manistee to finance improvements to its
  wastewater treatment plant and expand its capacity. Treatment
  upgrades will further the protection of Manistee Lake, while the
  additional capacity will accommodate anticipated growth within the
  community.

• A $7,450,000 loan to the city of Dearborn to accommodate the
  separation of combined sewers in a portion of the city. To date, over
  $150 million in SRF loans have been tendered to Dearborn to control
  combined sewer overflows.

• $6,630,000 in loan assistance to Huron County on behalf of the city
  of Bad Axe to complete upgrades to the city’s wastewater treatment
  plant.

Today’s commitments bring SRF financing awarded to Michigan communities to date to over $2.3 billion. These projects are further examples of the commitments being made by local units of government in Michigan to ensure protection of the local environment and the public health of its citizens.

The funded DWRF projects include:

• $1,040,000 to Barry County to construct a new elevated storage tank,
  and replace deteriorated water mains in the village of Middleville.

• A $4,820,000 loan to the Ypsilanti Community Utilities Authority for
  construction of improvements to the water distribution system in
  portions of Ypsilanti Charter Township.

• A loan of $825,000 to the city of Port Huron for its long term water
  main replacement program. To date, the city has received 13 loans
  totaling over $27 million from the DWRF.

• A $1,605,000 loan to Reed City to finance the construction of a new
  elevated water storage tank and the replacement of deteriorated
  water mains.

• $9,370,000 in loan assistance to Sanilac County for the extension of
  water service to residents along M-25 in Sanilac Township. The project
  will provide public water service to properties currently relying on
  inadequate private wells.

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, over $406 million in assistance has been tendered.

Program interest rates remain well below open market rates, with Fiscal Year 2006 loans at 1.625 percent in the SRF and 2.125 percent in the DWRF.

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

“Protecting Michigan’s Environment, Ensuring Michigan’s Future”

Revised June 12, 2006 by Pat Watson