Tri-County Times readers will soon see a notice in this paper about Fenton Township’s intent to issue capital improvement bonds in an amount not to exceed $5,000,000 to finance the costs of municipal water system infrastructure.
The Fenton Township Board of Trustees voted to approve the resolution on Tuesday, Jan 4.
By law, the township must publish the notice before the board votes on the bond.
No bonds have been issued yet. The money would help fund the $23.5-million water project that would bring municipal water to Thompson Road and farther south, as well as in certain areas in Mundy Township and Grand Blanc Township. The two municipalities are contributing funds.
Phase 1 construction is scheduled to begin this spring. It includes building a water tower on the northeast corner of Fenton and Thompson roads and constructing a water main on Thompson Road. Fenton Township has secured $6.5 million from Genesee County for the project, and they continue to pursue other fundraising and grant options.
Supervisor Vince Lorraine said his goal is to issue the smallest bond possible.
“Our intent is not to force anyone to connect at this point because we’ve been able to procure money and funds. The $5 million is there, but we don’t expect to get anywhere near that,” he said.
It’s an “up to amount,” said Thomas Broecker, operations manager and deputy clerk of Fenton Township. The bond is for $5 million but officials expect to collect $2 million to $3 million. Township attorneys recommended issuing a larger bond to avoid a scenario in which they would run out of money and issue a second one.
The principal and interest of the bonds will be payable from the township’s general funds. The debt on the bond should be covered by the revenue from the water system, Broecker said. The intent is for the system to be self supporting.