Title
Scheduling of Public Hearing for the GLWA FY 2027 Clean Water State Revolving Fund (CWSRF) Program Project Plan Submittals
Body
Agenda of: February 25, 2026
Item No.: 2026-015
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: February 25, 2026
RE: Scheduling of Public Hearing for the GLWA FY 2027 Clean Water State Revolving Fund (CWSRF) Program Project Plan Submittals
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the Scheduling of a Public Hearing for the GLWA FY 2027 Clean Water State Revolving Fund (CWSRF) project plan submissions for the 1) Conner Creek Sanitary Pump Station Replacement, and 2) Rehabilitation of Ashland Relief, Linwood, Second Avenue, and Shiawassee Sewers, and for April 22, 2026 at 2:00 p.m. and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Great Lakes Water Authority (the “GLWA”) identified two projects in the FY 2027 to FY 2029 Capital Improvement Plan (CIP) to be considered for low interest financing through the Michigan Department of Environment, Great Lakes and Energy (EGLE) FY 2027 CWSRF program:
1) Conner Creek Sanitary Pump Station Replacement
2) Rehabilitation of Asland Relief, Linwood, Second Avenue, and Shiawassee Sewers
GLWA must submit a Board adopted project plan for each proposed project to EGLE by the May 1, 2026 deadline. Applicants for a CWSRF loan, however, must also hold a formal public hearing prior to the adoption and submission of a final project plan. The public hearing should be scheduled for April 22, 2026, at 2:00 pm. This public meeting ensures transparency and will include a presentation summarizing each project plan, followed by an opportunity for public participation.
After the public hearing is closed, a resolution to adopt the final project plan will be scheduled for action by the GLWA Board at its regularly scheduled meeting also on April 22, 2026. The resolution must be approved and signed to ensure the finalized project plan and related forms are assembled and submitted to the EGLE by May 1, 2026.
The Public Hearing Notice and draft project plans for the proposed projects will be posted on the GLWA website <https://www.glwater.org/>.
The Projects:
Conner Creek Sanitary Pump Station Replacement (CIP #232002) - project includes the construction of a new sanitary pump station to improve the reliability and performance of the sewer system serving residential, commercial and industrial customers in the eastern Detroit area. The facility will include two wet wells, modern pumping equipment and flow control features to improve reliability and resiliency, enhance operational efficiency, and facilitate easier maintenance for operation and maintenance staff.
The total cost of this project is estimated at $190,000,000.
Rehabilitation of Ashland Relief, Linwood, Second Avenue and Shiawassee Sewers (AL2S) (CIP #260210) - project consists of the rehabilitation of four large diameter combined sewers throughout the City of Detroit. These four sewers, collectively referred to as AL2S, comprise over 8 miles of linear assets that convey wastewater from member communities through the GLWA service area and ultimately toward the Water Resource Recovery Facility (WRRF). The Ashland Relief Sewer and Shiawassee Sewer convey flow to the Freud Pump Station and Puritan Fenkell CSO Retention Treatment Basin, respectively, while the Linwood and Second Avenue sewers convey flow to larger collector sewers. The positive impacts of the project include structural rehabilitation and operations and maintenance (O&M) repairs of the sewers which are designed to extend their service lives by another 30 years and allow them to continue to convey flow to the GLWA WRRF
JUSTIFICATION
GLWA is seeking low interest loan assistance through the CWSRF program for the proposed projects. Savings are typically significant when comparing the interest rates under the CWSRF program with a similar open market revenue bond issue. Although the interest rate for FY 2027 will not be published by EGLE until October 2026, the current year’s interest rate of 2.50% for a 20-year loan and 2.75% for a 30-year loan is lower than present conventional revenue bond interest rates. GLWA may also qualify as an “overburdened applicant” and if eligible, the interest rates for a 20-year loan and 30-year loan will decrease to 2.00%. As long as interest rates for 30-year are comparable to 20-year loans, GLWA will consider the 30-year option.
It is prudent for GLWA to continue to pursue CWSRF loan funding as actual savings are anticipated to remain significant as interest rates are expected to remain high with the potential of only small decreases over the next year (and therefore increasing potential savings compared to use of open market revenue bonds). In addition, SRF funding is considered junior lien instead of bonds that are considered senior or second lien.
BUDGET IMPACT
Debt service interest payments on these projects would begin in the fall of FY 2027 and will be included as part of the FY 2026 financial plan.
COMMITTEE REVIEW
This matter was reviewed by the GLWA Audit Committee at its meeting on February 25, 2026. The Audit Committee unanimously recommends the Great Lakes Water Authority Board of Directors schedule a Public Hearing for the GLWA FY 2027 Clean Water State Revolving Fund (CWSRF) project plan submissions for the 1) Conner Creek Sanitary Pump Station Replacement, and 2) Rehabilitation of Ashland Relief, Linwood, Second Avenue, and Shiawassee Sewers, on April 22, 2026 at 2:00 p.m.