Lansing authorizes up to $40 million in sewer revenue bonds for SRF projects, including downtown separation

The Lansing City Council authorized sewer‑disposal system revenue bonds on Dec. 8 to finance a package of sanitary‑system improvements including the Tecumseh River Road pump station replacement and a downtown sewer‑separation project covering Cherry Street, Kalamazoo Street and Pine Street.

Council Member Hussain summarized the project as part of the city's continuing response to a 2019 administrative consent order from the Michigan Department of Environment, Great Lakes and Energy (EGLE) to reduce combined‑sewer overflows. The resolution authorizes SRF loans with an estimated not‑to‑exceed amount of $40,000,000, of which approximately $30,000,000 is SRF‑eligible. EGLE has indicated the project may receive roughly $2,800,000 in principal forgiveness. The Lansing Board of Water & Light will participate in downtown separation costs and is responsible for approximately $2,500,000 of the total construction cost, with remaining funding from local street, major‑street, sanitary and general funds.

Why it matters: The sewer‑separation work is intended to reduce untreated discharges to local waterways during wet weather and to comply with state consent‑order requirements. The financing approach leverages low‑interest SRF loans and partial principal forgiveness to spread costs over 30 years.

What’s next: Council adopted the resolution authorizing the bond issuance; project design and construction will proceed under the terms summarized in the SRF plan submitted to EGLE.