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City gives notice of intent for up to $18 million water revenue bonds to fund lead-line replacements
Summary
The fiscal committee approved a notice of intent to issue water supply system revenue bonds not to exceed $18 million, intended primarily to fund lead service line replacements and water main work in southeast Grand Rapids.
The fiscal committee voted to approve a notice of intent to issue water supply system revenue bonds not to exceed $18,000,000 to finance lead service-line replacements and water main improvements. The funding is expected to be issued through the Michigan Finance Authority as part of the Drinking Water State Revolving Fund (DWSRF) program and may include up to $4,000,000 in potential principal forgiveness.
City staff told commissioners the current project list is estimated at roughly $17.9 million and already includes a 6% contingency and issuance costs; staff said there is no intention to exceed the $18 million cap and added the city will supplement with cash on hand if necessary. A mid‑July closing was anticipated if state and MFA scheduling proceed as planned, and the loan term was described as 20 years.
Commissioners asked whether the $18 million cap could be exceeded and staff replied that the estimate already includes contingency and closing costs, and that a cash portion from the water fund would supplement the bond if needed. The motion to proceed was approved by voice vote.
Ending: Committee members approved the notice of intent; staff will return with closing timelines and final structure as the Michigan Finance Authority and state DWSRF processes advance.
