Four Communities Earn Local Infrastructure Loans

Contact: Sonya Butler, MDEQ Drinking Water & Municipal Assistance Division, butlers2@michigan.gov, 517-284-5433
Agency: Environmental Quality

June 27, 2017

The Michigan Department of Environmental Quality (MDEQ) announced today more than $14 million in loans to fund municipal water and sewer projects to improve water quality and public health. The loans include $700,000 in principal loan forgiveness for employing green practices or because of a disadvantaged community status.

The Clean Water State Revolving Fund (SRF) provides low-interest loan financing for necessary wastewater and stormwater improvements. The Drinking Water Revolving Fund (DWRF) provides low-interest loan financing for necessary public drinking water facility improvements. A portion of the SRF and DWRF is provided from the U.S. Environmental Protection Agency through capitalization grants.

With interest rates below those otherwise available in the open market, funding infrastructure projects through these two state administered loan programs allows the communities to pass the savings along to their system customer base.

Receiving SRF loan assistance:

  • Allen Creek Drainage District - $945,000 with $50,000 in principal loan forgiveness funds the installation of stormwater practices beneath a portion of Stadium Boulevard in Ann Arbor to reduce sediment and phosphorus inputs to the Huron River from nonpoint sources.
  • Hillsdale - $2 million with $100,000 in principal loan forgiveness funds an additional segment of wastewater treatment plant improvements begun in 2015 designed to achieve compliance with the city’s discharge permit and eliminate sanitary sewer overflows.
  • Dundee - $8.05 million with $50,000 in principal loan forgiveness funds rehabilitation of the wastewater treatment plant’s membrane bioreactor system, which is past its expected life and in danger of failing, and the construction of a relief sewer along the north side of the River Raisin to improve capacity and reduce sanitary sewer overflows in compliance with its Administrative Consent Order.

Receiving DWRF loan assistance:

  • Burton - $3.895 million with $500,000 in principal loan forgiveness funds new water main installation and the replacement of existing water mains and valves in the southwestern region of the city, advancing water quality, pressure, reliability, and redundancy goals and replacing system components that have exceeded or are at the end of their recommended useful design lives.

The SRF was established in 1988 and has since provided low-interest loans totaling more than $4.663 billion. The DWRF was established in 1997 and has since provided low-interest loans totaling more than $896 million.

If you would like more information on the SRF and DWRF loan programs, visit http://www.michigan.gov/cleanwaterrevolvingfund or http://www.michigan.gov/drinkingwaterrevolvingfund.

 

Additional Contact: Melody Kindraka, MDEQ Public Information Officer, kindrakam1@michigan.gov, 517-284-6716