Public Services Director Chappell, Ottawa County Public Utilities Director Staskiewicz and Township Consulting Engineer Kieft met with state officials regarding the Township′s Notice of Intent to apply for a loan under the Drinking Water State Revolving Fund (DWSRF) for the FY2024 Transmission Main project (i.e., $6+ million). In brief, it was determined that the Township will not qualify for this loan program – i.e., 1.875% 20-year loan rate.
More specifically, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) has a scoring criteria that awards a maximum of 100 points based on five categories, (1) Drinking Water Regulatory Compliance, (2) Public Health Protection, (3) Drinking Water Quality Standards, (4) Improving Infrastructure and (5) Affordability/ Disadvantaged. After reviewing this criteria, the Township would immediately have a reduction↓ of 45 points from the maximum score of 100.
Within these categories, EGLE determined that the Township was as ineligible:
- Because the transmission main project is being completed primarily for Growth – DWSRF funds cannot be provided for projects that are being done primarily because of growth or the continued increase in new commercial or residential developments within our community. This is an immediate disqualification of consideration.
- Because the transmission main project is not being done primarily for Public Health Protection – i.e., the Township has no lead service lines that must be replaced – this resulted in an immediate reduction↓ of 15 points.
- Because the Township is not a Disadvantaged or Overburdened Community – i.e., the Township′s Median Household Income is about $86k which is well above↑ the level considered “disadvantaged” – this resulted in an immediate reduction↓ of 25 points.
As a result, the Township will proceed with municipal bonding for the 2024 Transmission Main #3 project in partnership with Ottawa County.