Dear Governor,
I am renewing my call for additional funding to address Flint's water challenges, While
significant progress has been made, with the fiscal stress and pending lawsuits against the City,
there is a gap in the funds necessary to meet the adopted capital improvement plan and to
respond to new needs with lead pipes. Attached is a letter of request. I thank you in advance for
your willingness to review.
Sincerely,
Mayor Walling
Dayne Walling
Mayor, City of Flint
City Hall, 1101 S. Saginaw St.
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Flint, MI 48502
810-766-7346
[email protected]
www.cityofflint.com
follow me on twitter at
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CITY OF FLINT
Dayne Walling
Mayor
September 14, 2015
The Honorable Rick Snyder
Governor, State of Michigan
P.O. Box 30013
Lansing, MI 48909
RE: Call for Additional Support for Flint Water Improvement Plan
Dear Governor Snyder:
On behalf of the Flint community, I am writing with a renewed request for additional support to
address Flint’s water challenges to ensure that water is affordable and secure for everyone in Flint
especially our vulnerable populations. I am asking for an additional $30 million in funds for Flint’s
infrastructure and a new healthy homes initiative.
Significant progress has been made throughout this year to increase water safety and quality and I
thank you for the involvement of your office, the Michigan Department of Environmental Quality,
and the Michigan Department of Treasury. A majority of items in the Water Improvement Plan
are completed or underway. Most importantly, Flint is now in compliance with the Safe Drinking
Waiter Act due in large part to the installation of the new carbon filter. The infrastructure systems
are being made more secure and efficient through the State grants. Now the City is committed to
following the recommendation of the Michigan Department of Environmental Quality to optimize
the treatment process, reduce corrosion and further minimize risks from lead.
The need to accelerate the City’s capital improvement investments remains and has been further
increased by the continued financial stress and legal issues. Previously 1 requested support for
replacement or forgiveness of payment to the Drinking Water Revolving Loan Fund due to Flint’s
status as a distressed community and the gap in funding in the adopted capital improvement pian.
I understand that the existing federal law does not allow the existing Drinking Water Revolving
Loans that Flint is carrying to be forgiven in retrospect but the need still exists. Flint owes
approximately $20 Million. One solution is for the State to grant a new $20 Million that is designed
as forgivable from the start. Another solution is to provide
City of Flint © 1101S Saginaw Street « Flint, Michigan 48502
www. cityottint com * 1810) 766 - 7346 © Fax (8101 766 - 7218
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The Honorable Rick Snyder
September 14, 2015
Page 2
equivalent funding through an expansion of the grant program to Michigan’s Financially
Distressed Cities, Villages and Townships with a supplemental budget amendment in cooperation
with the State Legislature.
The community’s heightened concern about lead leeching into the water from old service lines and
home plumbing also needs to be addressed. We know that lead is an environmental contaminant
and there have been many programs in place over the years to address sources in paint and pipes.
Flint needs a new healthy homes initiative specifically focused on lead in water with $10 Million
to start the process of replacing service lines for the most vulnerable households. Regardless of the
source and treatment of Flint’s water, this long term threat of lead in pipes needs to be removed in
the interest of public health.
My approach continues to be to work with you and your appointed officials, State Senator Ananich,
State Representatives Phelps and Neeley, Congressman Kildee, community groups, businesses,
churches, foundations, the Flint City Council, and all of the City of Flint and State and Federal
government personnel. We need every available expert and resource to address Flint’s water
problems.
Flint’s safety is my top priority. Just as the City and State have worked together on public safety,
we need additional support for fixing the water problems. We need $30 Million in new funds to
repair and update the city-wide infrastructure and to assist households in becoming lead-free. The
entire Flint community deserves sustainable, safe, secure and affordable water now and into the
future. Thank you for the consideration Governor and I look forward to future discussions.
Sincerely,
Not Ha
Dayne Walling
Mayor, City of Flint
CC: Flint City Council President Joshua Freeman; Congressman Dan Kildee; State Senator Jim
Ananich; State Representative Sheldon Neeley; State Representative Phil Phelps; EPA Regional
Administrator Dr. Susan Hedman; Chief of Staff Dennis Muchmore
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CITY OF FLINT
Dayne Walling
Mayor
January 18, 2015
The Honorable Rick Snyder
Governor, State of Michigan
P.O. Box 30033
Lansing, Ml 48909
RE: Flint Water Improvement Plan
Dear Governor Snyder:
On behalf of the Flint community, | am writing to convey serious concerns about water quality and to
request your support for my proposed Flint Water Improvement Plan. Access to safe and clean water Is
a basic human right, and, therefore, policy and budget decisions need to ensure that water is affordable
and secure for everyone in Flint and all across Michigan it is essential there is City, State and Federal
cooperation to address the challenges here and to meet the needs of vulnerable populations.
The Flint Water Improvement Plan is focused in five areas: safety, quality, access, investment and
education. The plan puts safety and quality first because this is fundamental. It is designed to be a
sustainable solution for the City of Flint and the community as we move towards a new permanent
water supply from Lake Huron through the Karegnondi Water Authority. My plan offers new ideas and
also builds on successful models of utility, energy and assistance programs at the State and Federal
levels.
Safety & Quality
© 100% Safety is the standard
® City of Flint reports testing data to the public to assure safety and expands testing sites and
frequency
e Bring on experienced river water treatment operational management in the City of Flint
Access
e Annaunce an amnesty program for Flint water service turn-ons and reduce the turn-on fee
© Develop a revised affordable payment plan policy to encourage customers to return
e Design Federal and State partnership to establish new Orinking Water Emergency Assistance
Fund for the elderly and vuinerable families
investment
e Accelerate water system improvements outlined in the City of Flint Capital Improvement Plan
through Federal and State Investments
oO State approves City of Flint’s Distressed Cities Fund applications
City of Flint - 1101 S. Saginaw Street - Flint, Michigan 48502
www.cityofflint.com - (810) 766-7346 ° Fax: (810) 766-7218
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0 Federal and State support for replacement or forgiveness of payment to the Drinking
Water Revalving Loan Fund due to Flint’s status as a distressed community
o Federal and State grants for infrastructure improvements in alignment with the Flint
Master Plan
* City Water Department implements budgeted FY15 projects including leak detection, valve
repairs, new pipes and meter replacements
Education
* Oevelop a community partnership with universities to provide household and business
customers with information on testing and conservation
¢ Ongoing partnership with Michigan Department of Human Services, United Way, Salvation Army
and community organizations to provide Information and water assistance with the Keep the
Water Flowing Fund and support services
e Expand youth energy initiative to assist households with conservation and efficiency (piloted in
summer 2014 with Northwestern High Schoo! students, EcoWorks and Consumers Energy)
It is also critical to restore the public confidence in Flint Water. The implementation of this plan must be
accompanied by extensive community engagement including local elected officials. My objective is to
work with you and your appointed officials, State Senator Ananich, State Representatives Phelps and
Neeley, Congressman Kildee, cormmunity groups, businesses, churches, foundations, the Flint City
Council, and all of the City of Flint and government personnel.
It is imperative that we communicate better and provide residents more information. | understand
representatives from the Michigan Department of Environmental Quality will be joining a public forum
this week at City Hall. This engagement going forward is vital so thank you for supporting their efforts. [
think this issue of transparency is important for communities all across the State. | recommend a review
of the applicable laws and policies and, at a minimum, a new requirement that water testing data be
reported publicly no less than quarterly by law [n all Michigan communities in Flint’s population
category.
Thank you for the consideration Governor. There is nothing more important in Flint right new than fixing
the water problems. We must work together to identify funds to repair and update the water treatment
facilities and city-wide infrastructure and to help those persons without access to clean water so that
the entire Flint community has sustainable, safe, secure and affordable water now and into the future.
This is an important issue for the state of our State of Michigan and | urge you to work with us to
implement solutions.
Dayne Walling, Mayor
City of Flint
CC: Flint City Council President Joshua Freeman; Congressman Dan Kildee; State Senator Jim Ananich;
State Representative Sheldon Neeley; State Representative Phil Phelps; Flint Emergency Manager Jerry
Ambrose
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Summary: Conference Call with City of Flint
September 15, 2015
Participating: Tom Saxton, Wayne Workman, Fred Headen, Eric Cline, Mayor Walling, City
Administrator Natasha Henderson, Finance Director Jody Lundquist, City Attorney Pete Bade, Assistant
City Attorney Tony Chubb
e The City of Flint is involved in two lawsuits regarding water and sewer rates: Kincaid and Shears.
o. It was stressed that the Shears and Kincaid lawsuits are both separate but are being litigated
concurrently and that any developments mutually impact both suits.
e It was noted that in the opinion of the City, both cases will continue to be litigated for some time due
to the complexity of the issues involved.
e Inarelated matter, the City Attorney noted that the Water Coalition lawsuit to force the City to
purchase water from the City of Detroit was dismissed in Genesee County Circuit Court.
Shears Lawsuit
e Shears was decided by the Genesee County Circuit Court by a non-final order on August 17, 2015.
o Among other things, the Court enjoined City officials from any longer imposing a 35 percent
increase in water and sewer rates; from disconnecting water or sewer service due to
delinquent bills, dating back to September 16, 2011; and from placing liens on property due
to delinquent bills, dating back to September 16, 2011.
o City officials have filed an appeal with the Michigan Court of Appeals seeking, among other
things, a stay of the Genesee County Circuit Court injunction.
o Inthe interim, City officials are complying with the Court’s order in Shears.
e The City’s appeal is still being considered by the Court. No timeline for a decision is known.
Kincaid Lawsuit
e Kincaid was decided by the Michigan Court of Appeals on June 11, 2015.
o The Court held that a 35 percent increase in water and sewer rates imposed by City officials
on September 16, 2011, violated the City charter and that Emergency Manager Mike Brown
had no statutory authority to later ratify those rate increases in May of 2012.
o The Court of Appeals remanded the case to Genesee County Circuit Court.
© City officials intended to appeal this decision to the Michigan Supreme Court, but missed the
filing deadline by one day.
e The City Attorney stated that litigation of this case must continue because some key issues have yet
to be resolved, including:
© The exact damages have not been clarified.
© The issue of who has standing in this case remains unresolved.
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Summary: Conference Call with City of Flint
September 15, 2015
Financial Impacts
City officials estimate that nullification of the 35 percent increase in water and sewer rates is costing
approximately $600K/month. Therefore, if the Court orders either refunds or credits against future
water and sewer bills retroactive to September 16, 2011, the cost is estimated to be approximately
$30M.
o The Finance Director noted that since September 2011, the system has had a declining
number of users, so the total potential refund is higher than basing calculations from the
current number of users.
o The City Administrator stated that the City has not developed a plan to issue a refund of this
size because the City lacks sufficient funds to do so and they would be unable to operate at
this point.
The City Administrator noted that citizens are paying the latest monthly billing but that the City
must contend with lower revenues for the foreseeable future.
In addition, it was noted that if the City has to refund the Ready-to-Serve charge from September
2011 through July 1, 2015, that this amount is approximately $10M.
It was noted that the amount of delinquent funds owed to the City that are over 30 days old has
grown from $7.8M to $8.4M since the ruling in the Shears Lawsuit.
o Further, the City Administrator stated that because the City is prohibited from shutting off
service for non-payment, the amount of delinquent funds is expected to continue to grow.
In addition, the City Administrator noted that the measures taken to reserve funds within the system
to address the financial issues has delayed needed capital improvements, which further exacerbates
the problems within the system, but the City cannot address these capital needs without additional
revenue,
The City Administrator further stressed the importance of the State assistance sought by the Mayor
in his September 14, 2015, letter to the Governor.
o The Mayor requested $30M for infrastructure and capital improvements related to the City’s
water and sewer system.
0 It was stressed by Treasury that existing funding options were very limited and we were not
aware of anything short of a legislative appropriation.
" State funding of the City’s $30M request will likely invite requests from many other
communities with similar needs.
= The State recently awarded the City $2M in Distressed Cities grant funds to
implement improvements to their system.
«The State further provided the City with an additional $2M in relief for outstanding
SRF/DWREF loans.
= Treasury is not aware of any current Flint projects related to their water quality issues
that could be funded through the DWRF program and DEQ is responsible for
managing DWRF eligible projects.
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Byrne, Randall (T reasury)