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City clears notice to seek up to $21M in water revenue bonds to fund lead-line and main replacements
Summary
Grand Rapids approved a notice of intent for water‑supply revenue bonds not to exceed $21.05 million; staff said roughly $5M would target lead‑service line replacement and the rest would back nine water‑main projects, with possible principal forgiveness under the DWSRF.
The Grand Rapids fiscal committee approved a notice of intent on May 12 for a water‑supply revenue bond series not to exceed $21.05 million to support a package of drinking‑water system projects.
City staff told commissioners roughly a quarter of the anticipated borrowing — about $5 million — would be earmarked for lead service line replacement across the city, while the remainder would advance nine water‑main replacement projects coordinated with Vital Streets work. The series is expected to be issued through the Michigan Finance Authority and could be funded in part through the Drinking Water State Revolving Fund (DWSRF), with staff pointing to potential principal forgiveness of about $5.39 million depending on final borrowing.
Separately, the commission approved a $700,000 budget substitution to advance the SCADA modernization project (Supervisory Control And Data Acquisition), funded from leftover sewer and water replacement funds; staff said the substitution uses capital savings and will not affect fund balances.
Commissioners were given a high‑level timeline: staff said they do not expect to issue the full $21.05 million, with bids pointing to a smaller expected borrowing amount, and that they anticipate closing the bond issuance in late August if schedules hold. Speakers also flagged the city’s continuing work on lead‑service‑line inventories and outreach: the water utility has distributed home lead‑awareness kits and is funding private‑side work and public replacements with a mix of grant, DWRF, and municipal financing.
What’s next: staff will report further details on final borrowing amounts and DWSRF outcomes and will continue public outreach on lead service line replacement, including distribution of pitcher filters and private‑side support during replacements.
