Title
Resolution to Adopt the Great Lakes Water Authority Project Plans for Fiscal Year (FY) 2027 Clean Water State Revolving Fund (CWSRF) Funding Consideration
Body
Agenda of: April 22, 2026
Item No.: 2026-111
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: April 22, 2026
RE: Resolution to Adopt the Great Lakes Water Authority Project Plans for Fiscal Year (FY) 2027 Clean Water State Revolving Fund (CWSRF) Funding Consideration
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 attached Resolution to Adopt the GLWA 1) Conner Creek Sanitary Pump Station Replacement, and 2) Rehabilitation of Ashland Relief, Linwood, Second Avenue, and Shiawassee Sewers Project Plans for FY 2027 Clean Water State Revolving Fund (CWSRF) Funding Consideration; and authorizes the CEO to take such action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Great Lakes Water Authority (GLWA) is seeking low interest funding through the Michigan Department of Environment, Great Lakes, and Energy (EGLE) FY 2027 Clean Water State Revolving Fund (CWSRF). To qualify, GLWA must complete project planning documents, hold a public hearing, and obtain Board approval of a formal resolution.
GLWA has identified two projects in the FY 2026 - 30 Capital Improvement Plan for funding consideration:
Conner Creek Sanitary Pump Station Replacement (CIP #232002) - This project consists of the construction of a new sanitary pump station to improve the reliability and performance of the sewer system 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 estimated cost of this project is $190.0 million.
Rehabilitation of Ashland Relief, Linwood, Second Avenue, and Shiawassee Sewers (AL2S) (CIP #260210) - This project includes 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 estimated cost of this project is $14.2 million.
A public hearing is scheduled April 22, 2026, at 2:00 p.m. to present a summary of each project plan. Following the hearing, the GLWA Board of Directors will vote on a resolution to adopt the final project plan at its regularly scheduled meeting also on April 22, 2026. The Public Hearing Notice and project plans will be posted on the GLWA website <https://www.glwater.org/>.
Note: The estimated project cost in the Public Hearing Notice may differ from those in this Board letter. Cost estimates are subject to refinement based on final design and formal bidding outcomes.
JUSTIFICATION
EGLE requires a Board approved resolution to finalize the CWSRF application. This resolution authorizes the CEO to submit the final project plans and secure the CWSRF loans. The resolution must be signed and included with the final project planning documents by the May 1, 2026 deadline.
Pursuing CWSRF funding for the Conner Creek and AL2S projects allows GLWA to take advantage of low-interest loans, often below market municipal rates. Although the interest rate for FY 2027 may not be published until October 2026, current rates are 2.50% (20-year loan) and 2.75% (30-year loan), with possible reductions to 2.00% if GLWA qualifies as an "overburdened applicant." Compared to a market-based rate of 4.50%, the interest savings on these projects are substantial. By way of example, the combined potential interest savings for a 20-year loan is approximately $64.2 million (see Attachment 1 for additional details).
Note: Financing terms will be matched to the useful life of the asset (e.g., a 25-year asset will utilize a 20-year loan).
Another advantage of CWSRF loans is that interest costs are only incurred on drawn funds as expenditures occur, rather than the total loan amount immediately.
BUDGET IMPACT
Debt service interest payments on these projects would begin in the fall of 2028 and will be included as part of the FY 2029 financial plan.
COMMITTEE REVIEW
This matter was presented to the GLWA Audit Committee at its meeting on March 27, 2026. The Audit Committee unanimously recommends that the Great Lakes Water Authority Board of Director approve the attached Resolution to Adopt project plans for 1) Conner Creek Sanitary Pump Station Replacement and 2) Rehabilitation of Ashland Relief, Linwood, Second Avenue, and Shiawassee Sewers for FY 2027 Clean Water State Revolving Fund (CWSRF) Funding Consideration at its regularly scheduled meeting on April 22, 2026 at 2:00 p.m.