Eastpointe council approves notices to issue sewer and capital improvement bonds

Eastpointe City Council on Feb. 17 approved notices of intent that clear the way for the city to issue bonds connected to a state clean water loan for sewer work and to finance part of a planned police and court facility.

Pat McGa, the city’s bond counsel, told the council the sewer package the city applied for through the State Clean Water Revolving Fund includes roughly $633,000 in principal forgiveness and a loan “just under $5 million,” repayable over 20 years at about 2 percent. "In order to take advantage of this program, the city's required to issue bonds," he said, describing the notice of intent as the first step in a two-step process and noting a public notice requirement and a 10 percent referendum petition threshold to force a public vote.

McGa said the police-and-court facility project remains in design; council was told engineers estimate the overall project at about $18.6 million and the city is seeking to issue bonds not to exceed $10 million to pay the portion the city will finance after grants and city funds are applied.

The council voted to authorize the notices of intent and to publish the required public notices. The notice permits the city to issue bonds without putting the measure to a voter referendum unless a valid petition is filed.

What happens next: staff will publish the notice in the local paper as required and the city will return with final bond documents after bid results and formal financing decisions.

Why it matters: the sewer funding combines grant/principal forgiveness and low‑interest loan dollars intended to accelerate collection‑system improvements, while the capital notice preserves the city’s ability to finance a portion of a long‑planned police and court facility.