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Pellston council keeps 2026 SRF water funding path after state permit setback
Summary
After an EGLE denial that required extra hydrogeologic testing, the Pellston Village Council voted 5-0 to stay in the 2026 State Revolving Fund cycle to preserve a current $32 million award and pursue required permits with a September target.
The Village of Pellston Council voted unanimously on June 8 to remain in the 2026 State Revolving Fund (SRF) funding cycle for the village public water project after Michigan’s Department of Environment, Great Lakes and Energy (EGLE) denied the project’s treatment permit and required additional hydrogeologic testing.
Steven Warren of engineering firm OHM told the council EGLE’s denial was prompted by deeper wells and unanticipated mineral contaminants at the proposed sites, and said the Village must decide by June 12 whether to stay in the 2026 funding cycle. Warren told the council the current SRF award totals $32 million and cautioned that the same award would not be guaranteed if the Village deferred to 2027. He recommended continuing with the 2026 application and completing permit submissions and approvals by September 3.
Councilmember Jane Ann Rose moved to continue the 2026 SRF application process; Jackie Pierce seconded and the motion passed 5-0.
President Jim Gillett reported a related complication: McKinley Township voted to deny extension of the Village water system into the township except to serve affected residents on McRae Street with PFAS impacts. Gillett said Pellston officials, Pellston Schools (represented in discussions by Steve Seelye) and Emmet County Administrator Dave Boyer are negotiating a potential land swap for a wellsite on Robinson Road. He also told the council that state law prevents the Village from offering free or discounted water to selected residents.
At public comment, resident Mary Hessel asked what would happen if there were insufficient funds to finish the public water project; Gillett replied that failing to complete the project "is not an option" and said the Village will complete the work. The council did not take an additional formal vote on contingency financing at the meeting.
Next steps the council recorded are: proceed with additional hydrogeologic testing required by EGLE, submit the revised permit package, and pursue the SRF paperwork with the aim of meeting OHM’s September 3 permit target. The council’s motion to remain in the 2026 cycle preserves the Village’s eligibility for the current $32 million award while the permit work continues.
