Allegan council approves financing plan and hires engineers to design Rossman Park and downtown street projects

The City of Allegan on June 9 approved a financing plan to advance infrastructure repairs in the Rossman Park neighborhood and select downtown streets, and authorized engineering contracts to begin design work.

Council approved a financing plan after staff said the city could cover some work with cash reserves and a $721,000 local stabilization grant but would need to issue revenue bonds to pay for the water and sewer portions. Staff outlined a rate program to cover debt service and operations: an 8% water-rate increase in 2026 (planned for July 1, 2026), followed by 6% annual increases through 2030 and smaller adjustments thereafter in the staff model; sewer increases are smaller in the proposed schedule. Staff presented an example average monthly bill trajectory under the plan and said grant awards (MEDC, EGLE) could reduce future rate increases.

Design contracts: Council approved PO 26-0817 to Abbot Marsh for $1,190,000 for design and construction engineering for the Rossman Park neighborhood (design only; construction would require later approval). Council also approved PO 26-0818 to Abbot Marsh for $475,000 for design and construction engineering for the Trail/Chestnut/Walnut downtown infrastructure project. Leah Bechtel of Aben/Abbot Marsh told council work would start with surveys and monthly invoicing for completed work; staff said the PO enables the firm to begin design and engineering work so the projects can be competitively bid over the winter for spring construction.

Why it matters: Staff said Rossman Park contains more than 100 homes and some water and sewer infrastructure as old as 80 years; repeated sidewalk trip-and-fall incidents and visible sewer cracking were cited as drivers for prompt action. The projects would replace failing pipes, repair streets and address undersized storm systems in parts of the downtown grid. A sludge-thickener addition at the wastewater resource facility was presented as an operational investment that could reduce biosolids disposal costs and potentially increase capacity for revenue-generating waste acceptance.

Next steps: Staff will engage bond counsel to provide firm debt-service numbers and prepare the procurement and bidding schedule. The council passed the financing plan by voice vote and authorized staff to proceed with the two POs to begin design work; construction contracts would require subsequent approvals.