Bay City To Borrow Money For Water Line Replacement Project

Water quality is the number one concern for communities across Michigan, including Bay City. The city is being mandated by the state to replace all lead water service lines. City Manager Dana Muscott says the city will borrow up to $5 million for the project.

The state will charge 2% interest on the bonds. Bay City currently charges each water customer $2 per month for this effort. It generates about $360,000 per year that will cover the yearly payments to retire the bonds.

Muscott said the city will borrow the money from the state’s Drinking Water Revolving Fund. Up to 20% of the loan, $1 million dollars, could be forgiven by the state.

Muscott estimated it could take up to 20-years to replace every service line in the city. She said using contractors could get the project done sooner.