Rep. Kildee asks EPA about
clearing Flint's $22-million
water loans
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FLINT, MI-- U.S. Rep. Dan Kildee says the state may have the authority to
forgive Flint’s $22 million in remaining water loans, potentially freeing up that
money for “bnmediate water infrastructure improvements.”
"We don't know if the state would grant relief, (but} we don't want to be in a
position where they think they don't have the authority,” Kildee said today, April
8.
The congressman asked U.S. Environmental Protection Agency Administrator
Gina McCarthy for clarification on whether the debt ean be forgiven, citing two
provisions in federal law that could allow Gov. Rick Snyder to take action because
of Flint's status as a disadvantaged community.
Kildee said he made the request in a March 26 letter to the EPA.
MLive-The Flint Journal could not immediately reach an agency representative
for comment.
Dave Murray, a spokesman for Snyder, said in an email that Snyder "doesn't
believe it is appropriate to answer hypothetical questions."
Murray said last month that the state Treasury Department “doesn't have the
legal authority to forgive loans, and this has been shared with Flint city leaders."
His email today said the loans are a mix of federal and state dollars and said
treasury officials do “not believe there is any pathway in federal law that would
allow for loan forgiveness.”
"Gov. Snyder and the state continue to offer assistance to city leaders in their
efforts to address long-standing water infrastructure issues in Flint,” the
statement says.
Rildee said he believes it's more than likely that Snyder has the authority to act,
based in part on a legal opinion from the Congressional Research Service.
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Kildee's request comes less than a month after Fiint Mayor Dayne Walling
renewed his request to Snyder to forgive the water loans because of the city’s
continuing financial emergency.
Snyder declared Flint was in a financial emergency in 2011 after a review team
issued a report, and since then the city has been run by a succession of four state-
appointed emergency managers.
Emergency manager Jerry Ambrose authorized the restructuring of Flint’s four
outstanding Drinking Water Revolving Fund bonds on March 19, postponing
current principal payments and freeing up $2.2 million to help fix water safety
and quality in the city.
Murray said the state allowed that action so that the loan repayments can be used
for expenses tied to "Maintaining safety and improving the quality of Flint water.”
The city's water bonds are currently financed at a rate of 2.5 percent, and
delaying the principal payment will increase the cost of the borrowing by
approximately 2 pereent ~ or $228,000 ~ over the 20-vear life of the issues, the
city has said.
The city has been struggling with the quality of its drinking water since it started
using the Flint River as a water source in April 2014.
Flint was found te be in violation of the federal Safe Drinking Water Act because
the annual average level of total trihalomethanes (TTHM) at two testing locations
in the city since April 2014 was too high.
TTHM is a byproduct of chlorinating water and warnings issued by the city say
the contaminant in high levels could increase the risk of cancer if consumed over
many years.
The most recent tests have shown that each of eight sampling locations in the city
had acceptable levels of TTHM, but residents and City Council members have
continued to complain about water quality issues like discoloration and cdor.
City officials have said the water meets safety standards for drinking, and that
those quality issues are tied to Fiint's aging water infrastructure, which includes
distribution pines that are breaking at a rate of nearly one per day and which are
too large for the current population,
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Kildee said Flint is among older cities in Michigan that are struggling with
population loss and maintaining infrastructure that was built decades ago when
more people lived here to support it.
"It makes it harder for the city to dig itself out of a hole (now),” Kildee said, "I
think it does create a unique circumstance for cities like Flint ... trying to go from
the old to the new economy.”
Many of the water problems here have come to light since the city began using
the Flint River as its water source one year ago.
Although the city and Genesee County are currently building a new water
pipeline to Lake Huron, it's not expected to be completed until some point in
2026.
e §6Rep. Kildee asks EPA about clearing Flint’s $22-million water loans
e §6Flint pastors plan news conference on ‘lack of progress’ on Flint water issues
e §6Flint councilman equates water troubles to ‘genocide’ by governor
e §6Flint Mayor Dayne Walling: I drink Fiint water every day
e €6TTHM contaminant notices, water quality updates ready for mailing to Flint
customers
http://www asks feds about forgive htmikine
art river
Wendy Fitzner, Chief
East Project Management Unit,
Revolving Loan Section
Office of Drinking Water and Municipal Assistance
517-248-5406
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