In 2021, the City of Morenci was awarded a Community Development Block Grant (CDBG) from the Michigan Economic Development Corporation (MEDC) in the amount of $2M for water system and sanitary upgrades, as well as surface pavement on Locust and Salisbury Streets. The project would also include a new water plant lift station and upgraded iron removal filter media. During the application period, the consulting engineer’s estimated cost for the project was $2M for construction, with a match of roughly $400,000 by the City of Morenci for design and engineering costs. Bids were received in the Summer of 2022 and were much higher than the engineers anticipated, with overall project cost being $4.2M. Several other municipalities receiving the CDBG have experienced this outcome, and for that reason the MEDC increased the grant award to $2.5M. The MEDC does not allow for a change in project scope to reduce costs. Therefore, along with the increased award from the MEDC, the City will fill the funding gap through a $1.9M bond and use the opportunity to make further upgrades. These will include radio-read water meters that will provide more accurate and timely readings and a working vacuum truck for the DPW. The City of Morenci is committed to maintaining quality water standards. In order to complete these vital capital improvement updates, a Resolution for the Intent to Bond was approved by City Council at the January 2023 regular meeting.

Capital Improvement Bond

City of Morenci

February 1, 2023

In 2021, the City of Morenci was awarded a Community Development Block Grant (CDBG) from the Michigan Economic Development Corporation (MEDC) in the amount of $2M for water system and sanitary upgrades, as well as surface pavement on Locust and Salisbury Streets. The project would also include a new sewer lift station and upgraded iron removal filter media. During the application period, the consulting engineer’s estimated cost for the project was $2M for construction, with a match of roughly $400,000 by the City of Morenci for design and engineering costs.

Bids were received in the Summer of 2022 and were much higher than the engineers anticipated, with overall project cost being $4.2M. Several other municipalities receiving the CDBG Grant have experienced this outcome, and for that reason the MEDC increased the grant award to $2.5M.

The MEDC does not allow for a change in project scope to reduce costs. Therefore, along with the increased award from the MEDC, the City will fill the funding gap through a $1.9M bond and use the opportunity to make further upgrades. These will include radio-read water meters that will be installed in every property in Morenci that will provide more accurate and timely readings for utility customers. The grant is to also secure funding to replace the existing 1987 Vactor Truck with a more modern and reliable truck.

As always, the City of Morenci is committed to maintaining quality water standards. In order to complete these vital capital improvement updates, a Resolution for the Intent to Bond was approved by City Council at the January 2023 regular meeting.