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Coldwater approves DWSRF notice to issue bonds to replace lead service lines; up to $3M project
Summary
Council adopted resolution 25-1-11 to notify electors of intent to issue bonds through Michigan's Drinking Water State Revolving Fund to replace lead service lines; staff said up to $3 million could be incurred with roughly 50% forgiven and the water fund repaying about $1.5 million over 20 years.
The Coldwater City Council on Dec. 15 adopted a resolution notifying electors of the city's intent to issue debt to replace lead service lines using Michigan's Drinking Water State Revolving Fund (DWSRF).
Tom presented resolution 25-1-11 and told the council the project would reimburse construction costs as incurred and that repayment would come from the water fund. "Total amount of the debt could be up to $3,000,000 depending on how much we spend, but 50% it would be forgiven so that the principal that the water fund would pay back would be up to 1 and a half million dollars," Tom said. Staff recommended a bidding process this winter for contractors and a construction start in 2026.
Council members asked whether staff labor would be reimbursed; Tom said wages would be reimbursed and that using contractors was necessary to complete the work within the program deadlines. He said the 2026 project will focus on older neighborhoods, particularly the 4th Ward, and that the city has previously removed several hundred lead lines and expects the new project to make substantial progress but not finish all remaining lines.
Council adopted the resolution by voice vote. The resolution provides for initial reimbursement by the state; specific project scope, contractor selection and final bond issuance remain to be handled in subsequent procurement and financing steps.
