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Council hears plan to authorize loan for new water-treatment plant
Summary
City staff described a loan request through the Public Water Supply Loan Program for a new water treatment plant; the council was asked to authorize borrowing up to $45 million to preserve flexibility for contingencies and keep the procurement timeline for March 2026, and the item was placed for second reading.
At the Committee of the Whole meeting, city staff discussed an ordinance authorizing the City of Macomb to borrow through the Public Water Supply Loan Program to finance a planned water treatment plant.
A presenter identified as Miss Ortman summarized prior approvals and current estimates: the city had been approved originally for $37,000,000 in loan proceeds with $6,000,000 of principal forgiveness; after design updates and adding contingency and construction engineering, "the new estimate" is about $41,000,000, so the ordinance requests authority up to $45,000,000 to allow flexibility if additional funds are needed. Ortman emphasized that any actual increase in project cost would still require city council approval.
She said the project must be advertised by March 2026 to remain eligible for the loan timeline and noted Macomb qualifies as a disadvantaged community, which may allow a 40-year loan term instead of 30 years; the current interest rate cited was 2.16%.
Council members did not oppose the request and placed the ordinance on the agenda for second reading and final action at next week's council meeting.
Next steps: the ordinance will return at second reading for final council approval; staff cautioned that any change to project scope that increases costs beyond the ordinance authorization would return for explicit council approval.
