City staff told the council on Nov. 25 that Hamtramck received a Drinking Water State Revolving Fund (DWSRF) award for lead service line replacement across roughly 17 blocks. The state offered 50% loan and 50% principal forgiveness. Staff asked council to approve engineering services (estimated $326,900) so the project can meet program milestone dates.

Public-works staff explained that the overall project estimate is about $5.6 million, with roughly $2.8 million in principal forgiveness and the remainder to be financed through a revenue bond repaid from the water and sewer fund over 30 years. "We have to engage a financial adviser and bond counsel to issue these bonds," staff said.

Several councilmembers asked whether the local share would increase residents’ water bills. Staff acknowledged there would be adjustments to water rates to cover debt-service costs but said the impact would be modest. Council members urged staff to continue pursuing federal grant opportunities that could replace or reduce bonding, and one member proposed removing a previous rate increase pending further review.

Council approved related steps required for the SRF process: authorizing engineering services, engaging bond counsel and financial advisors, and publishing the required notice of intent to issue revenue bonds (which begins a 45-day public-comment window). Staff emphasized that pursuing the SRF timeline does not preclude later accepting a federal grant if one becomes available; council can cancel bond issuance if larger grants are secured.

Next steps: staff will proceed with engineering design, complete the SRF milestones and return to council with construction contracts and final financing recommendations. Council asked for continued monitoring of water-rate impacts and follow-up during the next budget cycle.