City Council approves $51M revenue bonds for water and sewer improvements

East Lansing City Council has taken a significant step towards enhancing its water and sewer infrastructure by considering a resolution to issue revenue bonds totaling $51 million. This funding will support crucial capital improvements at the Water Resource Recovery Facility (WRRF) and the sewer collection system.

During the March 4, 2025, meeting, Ron Lacoste, the Director of Public Works, outlined the two main projects that will benefit from this bond. The first project focuses on sewer improvements in the River Water's Edge and Woodmere areas, which includes separating sewers and upgrading water mains. This initiative aims to address longstanding infrastructure issues in the traditionally affected Seer Village area and extend improvements north of Grand River into the Gunson and Milford neighborhoods.

The second project involves significant upgrades to the WRRF, which has been recognized as a state-of-the-art facility. However, the control building has lagged behind in modernization. The proposed upgrades will enhance laboratory facilities, improve staffing spaces, and address compliance issues, including the addition of a female locker room. These improvements are designed to bring the control facility up to par with the advanced operations of the plant.

The estimated eligible costs for the sewer improvements are around $42.2 million, with approximately 80.8% of those costs qualifying for funding. The WRRF component is fully eligible for funding. The city plans to cover about $13.5 million of the eligible costs, with Meridian Township contributing an additional $1.2 million for its share of the sewer project.

In addition to the eligible costs, the city anticipates needing a capital improvement bond for the ineligible portions of the project, estimated to be between $4.3 million and $5 million, depending on bids. This comprehensive approach aims to ensure that East Lansing's water and sewer systems are not only functional but also efficient and compliant with modern standards.

The council's decision to move forward with this resolution marks a pivotal moment for East Lansing, as it seeks to enhance its infrastructure and improve service delivery for residents. The anticipated upgrades are expected to have a lasting positive impact on the community's health and environmental sustainability.