September 7, 2006

Department of Environmental Quality Director Steven E. Chester announced eleven new loan commitments today from the revolving fund programs. The State Revolving Fund (SRF) and Strategic Water Quality Initiatives Fund 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 loans announced today total $55.3 million.

“We continue to make much needed progress in protecting and enhancing Michigan’s water resources,” said Director Chester. “These funds give communities the needed resources to make improvements, and represent a real investment in Michigan’s environmental and economic future.”

The funded SRF projects include:

• The sum of $6,030,000 to the city of Three Rivers for improvements to
  its wastewater treatment plant, including a capacity expansion, for
  which construction was completed in 2003. The SRF loan will provide
  for the refinancing of bonds initially sold by the city to construct the
  improvements.

• A loan of $2,815,000 to Genesee County for the third in a series of
  projects to provide interceptor relief for the sewer systems tributary to
  the Anthony Ragnone Wastewater Treatment Plant. The system serves
  24 communities in Genesee, Saginaw, and Shiawassee counties. The
  relief sewers will eliminate sanitary sewer overflows currently occurring
  during wet weather.

• Assistance of $2,200,000 to the city of Bangor for the upgrade and
  expansion of the city’s wastewater lagoons. The funds will be used to
  refinance a Rural Utilities Service loan used to construct the project.

• Loan assistance of $1,575,000 to the city of Saginaw for improvements
  to the city’s wastewater treatment plant. Second in a projected series
  of three projects, the funds will be used to replace and upgrade pumps
  within the facility.

• A loan of $14,000,000 to Muskegon County for the replacement of a
  major pump station in the county’s Metro Wastewater System. The
  system serves 13 local units of government and has 41 significant
  industrial users.

• Loan assistance of $12,025,000 to Van Buren Charter Township in
  Wayne County, for the construction of a wastewater equalization basin.
  The facility will allow the township to equalize flows during high flow
  periods and avoid exceeding contract capacities with treatment
  providers.

These commitments bring SRF financing awarded to Michigan communities to date, to over $2.35 billion. These projects are further 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:

• The sum of $4,900,000 to St. Clair County to replace deteriorated water
  mains in Ira Township.

• A $3,475,000 loan to the city of Ferndale for construction of
  improvements to its water distribution system, including the
  replacement of deteriorated water mains, the looping of dead ends, and
  the upgrade/replacement of booster stations.

• A loan of $2,040,000 to the city of Port Huron to install a filter
  backwash handling system at its water treatment plant. To date, the
  city has received 14 loans totaling over $29 million from the DWRF.

• A $6,035,000 loan to the city of Detroit. The loan will finance the
  replacement of aged water mains in the Northeast and Lower Northwest
  areas of the city.

• The sum of $205,000 to Barry County to construct a new supply well
  for the village of Middleville. In combination with an earlier DWRF loan,
  this project will complete needed improvements to the village’s water
  system.

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 $418 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 September 7, 2006 by Pat Watson