The City of Alpena is set to issue $3.9 million in bonds to help cover unexpected cost increases for two major public safety projects. During a recent Alpena Municipal Council meeting, members voted unanimously to proceed with the bond sale to address the financial shortfall for replacing aging clear wells at the city’s water production facility and to support the purchase of a new aerial fire truck.
Originally estimated at $6.2 million for construction and an additional $1 million for engineering services, the clear well project has seen costs balloon to $9.8 million. Contributing factors include rising construction expenses and added infrastructure needs, such as internal valves and piping. Although Alpena was awarded a $6 million Michigan Economic Development Workforce Grant in 2022 to support the replacement of the aging tanks, the grant falls short of the current financial demand.
Clear wells are critical components of the city’s water system, responsible for storing treated water and allowing sufficient chlorination time before distribution. The existing tanks are decades old, and despite past maintenance, they now require complete replacement to ensure continued water quality and service reliability.
Aging Fire Truck Prompts Investment in Public Safety
A portion of the bond proceeds, about $900,000, will also help fund the replacement of Alpena’s 31-year-old aerial fire truck, which is the only one of its kind within a 70-mile radius. The current truck, while still operational, has shown signs of deterioration and can no longer guarantee the reliability needed for emergency responses involving high elevations.
The total cost for the new truck is $2,007,980. While the city initially secured a federal grant of over $1 million to help offset the expense, that grant and others like it were later withdrawn. However, Alpena Fire Chief Rob Edmonds expressed hope that a resubmitted grant application may be approved in the future, potentially reducing the city’s out-of-pocket costs.
Edmonds noted that it will take approximately 44 months from the January order date for the truck to be manufactured and delivered. This extended timeline provides a window during which new funding might become available, easing the financial burden on the city’s general fund.
Next Steps and Financial Oversight
To support the bond issuance, the council also approved the hiring of Dickinson Wright as bond counsel for $19,250 and retained MFCI as financial advisor at a cost of $15,362. These services will ensure the legal and fiscal integrity of the bond process.
While the specifics of the bond duration, repayment schedule, and installment amounts have yet to be finalized, city officials emphasized the importance of moving forward to address both aging infrastructure and critical public safety equipment.
The council’s 5-0 vote reflects strong local government support for proactive investment in essential city services, despite challenges posed by rising costs and uncertain grant funding.
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