Mount Clemens commissioners rescind $45M plant plan, approve $17M loan to connect to Great Lakes Water Authority

The Mount Clemens City Commission voted to withdraw its application for a $45 million Drinking Water State Revolving Fund (DWSRF) loan for a new water-treatment plant and approved applying for a $17 million DWSRF loan to connect the city to the Great Lakes Water Authority.

The decision followed administration briefings and outside advice that the city’s bonding capacity and state guidance made approval of the larger plant unlikely. "We reached back out to Eagle who said it would be very unlikely that we would get funding for that," the city manager said, summarizing written feedback received from state and bond advisers.

Commissioners said the city’s financial limits make a large treatment plant impractical. One commissioner noted that about 48% of property in the city is nontaxable, and officials quoted a system size of roughly 5,900 accounts to underscore the per-customer burden of a major bond. "A $47 million bill for 5,900 accounts is just insurmountable," the chair said during discussion.

Residents who spoke during public comment urged caution about ceding control of the city’s water system and stressed public-health considerations. "Sometimes things are more valuable than the money ... and one is the health and well-being of the community for the long term," resident Justin Clark said, arguing the commission should prioritize water quality in choosing a path forward.

Supporters of pursuing the GLWA connection said the alternative preserves service continuity while avoiding a large up-front bond that could strain the city’s fiscal capacity. At the roll call for the $17 million application, the motion carried with a majority of commissioners voting yes; two members recorded no votes.

The resolution authorizes the city manager to execute loan documents for the $17 million DWSRF application to fund the GLWA connection. The commission also directed continued review of bids and noted the possibility of adjusting assessments or using general funds if actual costs differ from estimates.

Next steps include return of formal loan documents and further administrative work to finalize assessment rolls and bid outcomes; the city will hold a second public hearing on related special-assessment rates on 2023-01-03 as noted during the meeting.

For transparency, the commission recorded that the recommendation to shift from a new plant to a GLWA connection stemmed from advice by the city’s bond adviser and state agencies that the larger project was unlikely to be funded or would exceed the city’s bonding capacity.