Benton Harbor City Commissioners will soon be asked to reallocate $2.7 million in state grant funding from use to another to allow for improvements at the water plant.
Speaking to the Economic Development and Parks Committee this week, City Manager Alex Little said the money from Michigan Department of Environment, Great Lakes, and Energy intended for lead water line replacements is currently earmarked for distribution system upgrades. However, to meet the demands of a state consent order for the water plant, it’ll now be earmarked for water treatment plant improvements.
Little was asked if such a transfer is allowed.
“There are no problems,” Little said. “It doesn’t negatively impact anything. We’re simply transferring it over to address some of the priorities that we have to address to comply with EGLE’s request.”
Committee Chair Duane Seats wanted to be sure.
“So we’re not charging the city residents any more money?” Seats asked.
“Absolutely not,” Little said.
“And we’re not going to get another millage?”
“No, sir.”
“So there’s nothing that we’re doing illegally or wrong to transfer this money?” Seats continued.
“That’s absolutely right and it’s with EGLE’s blessing,” Little replied.
In 2022, EGLE awarded $45 million in grant funding to the city to support water infrastructure. The original agreement provided $18.2 million for the purpose of lead service line replacements, but that work is all finished now. Meanwhile, the city still has tens of millions of work left to do at the water plant.
The full city commission will now consider Little’s request to amend the original grant agreement at a future meeting.
