Officials hoping to keep user increase to under $11 a month
By Barb Pert Templeton
Members of the Marine City Commission recently unanimously approved Ordinance 24-006 to provide for the acquisition, construction and installation, furnishings and equipping of additions and improvements to the water supply and sewage disposal system for the city.
The ordinance also allows for the sale of bonds for the project, the collecting of revenue to fund the operations and maintenance of the system plus pay the principal and interest on the bonds.
At an Aug. 1 meeting, City Manager Scott Adkins took a few moments to share that the ordinance is a portion of the Safe Drinking Water Program that was required by an administrative order by Michigan EGLE (Environment, Great Lakes and Energy) to make improvements to the water system including the water plant back in March 2023.
Adkins said the city was already seeking to get a grant or loan from the state and there was no guarantee either would come through for the city. Still, the work needed to be completed per the state order.
At the onset, the costs would have prompted a $65 monthly increase in resident water bills but after making an application for a state grant that cost was reduced to $30 per resident per month, Adkins said.
Marine City Attorney Robert Davis.
“Still a high dollar amount but fortunately through the safe drinking water program the state revolving fund for water also had a loan program, a two percent loan that could be taken for up to 40 years and it’s a guaranteed loan supported by the State of Michigan,” Adkins explained.
After an authorization by the city commission to begin the project, the loan took the increase down to $15 per month per user and that was determined to be a revenue repayment meaning it’s a revenue bond process.
Translation: the $15 user fees will be utilized to pay off the state loan for up to 40 years at a two percent rate. It’s all part of Public Act 94 for the State of Michigan.
“Again, fortunately, we are one of very few communities in the state that received both a grant and a loan for a $26 million dollar project that we were absolutely required to do, with or without any financial assistance,” Adkins said. “We are in a very good position to get both the grant and a loan.”
The Marine City Water Plant.
Adkins said officials also believe that based on the bids that have come in they are hoping they may be able to reduce the residential users monthly increase down even more to between $8 and $11.
“Keep in mind that commercial, retail, large industrial users and those with larger meters actually will pay a larger amount,” Adkins said. “But this is phenomenal position to be in, from having a risk of having to pay $60 per month, down to $30, down to $15 to hopefully between $8 and $11.”
“A lot of work has been done by a lot of folks, we appreciate the commissions’ support and we hope the residents understand,” he added.
The bond sale will occur in mid-August and the closing is set for Aug. 28 and then funds will be available within two weeks. Adkins said the city has already expended $750,000 on the project.
City Attorney Robert Davis said it’s important to relay to residents that the city was under a state order to do this project, there was no negotiation, it was happening regardless of how they ended up paying for it.
“When you read the latest water report you are doing very well,” Davis said. “And when you discuss this, you need to relay to people that this we happening regardless of how we paid for it.”
Mayor Pro Tem Lisa Hendrick said another plus of the project is that once the city is done with the water and sewer project it includes the repaving of the majority of the roads which everyone can’t stand.
“So that’s an extra plus in there that is covered under this grant,” Hendrick said.
“This grant is monumental, it’s gigantic and the way it was described to me was a once in a lifetime opportunity to pull this in and make this happen,” Commissioner Sean O’Brien added.
Davis said it disheartens him when he hears that the plan is a backdoor way to simply increase taxes.
“Please, this is not a roundabout taxation on the people this is a drinking water of high quality being achieved with very, very, lucrative grant monies and other programs,” Davis said. “This is not a clever way to increase taxes, this is not what this is.”
