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State loan program selects Michigan City project; board told $5 million initial allocation is available for lead service-line work
Summary
At its June 30 meeting the Michigan City Waterworks Board was notified that its State Revolving Fund application for lead service connector removal was selected for funding; staff said an initial $5 million allocation was available, with up to 50% potentially forgivable and the remainder at 0% interest, but details and timing must still be worked out.
At the waterworks board meeting on June 30, staff told members the city’s application to the State Revolving Fund (SRF) through the Indiana Finance Authority was selected for funding for a lead service connector removal project.
“The good news is that our project has been approved for funding,” the staff presenter said, adding that the board will need to “work out all the details and the timing.” The presenter said the initial allocation was $5 million and described the funding as a line-of-credit style award: the city can draw portions as work proceeds.
Staff said up to 50% of the funds being loaned may be forgivable for this project and that the remaining portion appears to carry 0% interest according to the notice the utility received. Board members were not given finalized terms or a draw schedule during the meeting.
Officials noted the project targets neighborhoods with concentrations of older service lines and economically disadvantaged areas. Staff said additional information about exact program terms, schedule and local prioritization will be provided as the utility finalizes loan documents with the Indiana Finance Authority.
The board did not take a formal vote on the award during the June 30 meeting; staff indicated they will return with details and next steps once the financing terms are finalized.
