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Kalamazoo adopts $101.18 million water bond and approves construction contracts for pump stations and mains
Summary
The Kalamazoo City Commission on July 7 adopted an ordinance authorizing Water Supply System Revenue Bonds Series 2025B not to exceed $101,180,000 and approved related construction and engineering contracts for pump station reconstruction and street-level utility work.
The Kalamazoo City Commission on Monday adopted an ordinance authorizing Water Supply System Revenue Bonds, Series 2025B, in an amount not to exceed $101,180,000 and approved several related construction and engineering contracts to repair and upgrade the city’s drinking-water infrastructure.
The bond ordinance, approved by unanimous roll call, will fund a package of water-system projects the city has been scheduling for several meetings. City staff said the structure — a 40-year loan at roughly 2% interest — reduces borrowing costs and includes principal forgiveness tied to program terms.
"This bond is over 40 years at 2% interest... that's gonna be over $20,000,000 in interest that we're not gonna have to pay back," said Steve Vincenzi, who briefed commissioners on the financing and savings. He added that the program yields roughly $20 million in principal forgiveness for the projects, producing about $40 million in total savings versus standard market bonds.
Why it matters: Commissioners described the vote as a major, long-term investment in public health and reliability. Several commissioners said delaying infrastructure upgrades would raise future costs and risk service interruptions.
Key actions taken: the commission approved a professional-services agreement with Tetra Tech for construction engineering on Contract 1 (pump station 5 and 14 water transmission mains) for $1,297,639; approved a separate Tetra Tech contract for Contract 2 pump station 5 and 14 reconstruction for $3,724,152; and approved a contract with Peters Construction Company for utility improvements on Newton’s Court, Fellows Avenue and John Street for $2,488,541.77. Those items were presented together as part of the city’s water capital program and passed on voice and roll-call votes.
Public comment included concerns about local flooding and new development. One resident warned that removing green space and adding hard surfaces could increase localized flooding and asked for more attention to stormwater in neighborhood plans. The city’s chief administrative officer, Sheila Lamb, and staff noted that Arcadia Creek work — a separate but related creek-capacity and utility upgrade project — had opened the week of the meeting and that West Midge would be closed between Kalamazoo Avenue and Michigan Avenue through mid-August for construction.
Commissioners framed the vote as an investment in resilience. “We need to tackle these issues now because it will make us a far more resilient and thriving community for our kids and our grandkids,” Commissioner Prado said before voting yes.
What’s next: Staff will finalize the bond issuance paperwork and begin contracting and construction work already under design. Several projects are on multiyear schedules and will require ongoing coordination with contractors and grant/program administrators who provided the principal forgiveness.
