Linden — On Monday, June 26, the Linden City Council approved the financing contract for the Southern Lakes Phase Two and Phase Three Water Supply Bond.
This is the next step in the ongoing project to connect Fenton Township and Linden to the Genesee County Southern Water Supply System Southern Loop. The Fenton Township Board of Trustees approved this financing agreement in early June.
According to a letter from the Genesee County Drain Commission, Genesee County will issue bonds in the aggregate principal amount of not to exceed $9,500,000 to pay all or a portion of the costs of the project.
Fenton Township’s share of the principal amount of the bonds will not exceed $5,930,000 (62%). The city of Linden’s share of the bill not exceed $3,575,000 (37%).
“This is a financing contract to allow the county to borrow money from the Drinking Water Revolving Loan Fund,” said John O’Brien, director of the Division of Water & Waste Service of the Genesee County Drain Commissioner’s Office. “What we’re looking at right now is a 20-year loan at 1 7/8% interest rate.”
Genesee County has received the Draft Project Priority List for Fiscal Year 2023 Drinking Water State Revolving Fund (DWSRF). Phase two of the Thompson Road water project received a ranking of 15th, with a 25% principal forgiveness. The county required that the township and city approve the financing agreement.
O’Brien said the county borrows money through Public Act 342 and it is a section five bond. The vote on Monday also approves giving notice to the public about the financing agreement.
The project consists of three phases.
In phase one, which is currently under construction, a new water main will service residents in Mundy and Fenton townships, and will be located from the intersection of Baldwin and Fenton roads, heading south along Fenton Road to Thompson Road and west along Thompson Road to Jennings Road.
Phase two and phase three are called the Southern Lakes Extension. Phase two of the project involves installing a water main extension from Torrey Road to Lahring Road to Jennings Road and back to Thompson Road to create a loop.
In phase three, when the project connects to Linden water infrastructure, they will install a water main along Lahring Road, south along Ripley Road and then west along Rolston Road.