Detroit approves $110 million in project plans for state water and sewer funding

Detroit approves $110 million in project plans for state water and sewer fundingThe Detroit Water and Sewerage Department (DWSD) is targeting substantial principal forgiveness and long-term financing to support critical main replacements and lead line removal.

The Board approved a $39 million Clean Water SRF plan for sewer rehabilitation and a $71.2 million Drinking Water SRF plan for water mains.

Water projects include $30 million specifically allocated for three standalone lead service line replacement projects.

Director Gary Brown noted that lead line replacement pace has slowed due to a lack of recent external funding.

A separate $7.9 million contract was awarded to LGC Global for lead service line replacements in the Cadillac Heights neighborhood.

The Detroit Board of Water Commissioners voted on February 18, 2026, to adopt final project plans for Fiscal Year 2027, authorizing the Detroit Water and Sewerage Department (DWSD) to apply for over $110 million in financing through Michigan's State Revolving Fund (SRF) programs. Deputy Director Samuel Smalley presented a $39 million plan for the Clean Water State Revolving Fund (CWSRF), focusing on sewer main replacement, cured-in-place pipe rehabilitation, and spot repairs. Smalley noted that Detroit qualifies as a "significantly disadvantaged community," which allows the utility to request 30- to 40-year financing terms rather than the standard 20 years, along with significant principal forgiveness. On the drinking water side, the Board approved a $71.2 million plan for the Drinking Water State Revolving Fund (DWSRF). This request includes $40 million divided between two water main replacement projects and $30 million dedicated to three standalone lead service line replacement projects. The work will target approximately 5.7 miles of vintage cast iron mains and roughly 1,000 full lead service line replacements per project. During the discussion, Director Gary Brown highlighted the financial challenges facing the city's lead abatement efforts. While DWSD has replaced approximately 16,000 lines to date at an average cost of $9,000 per line, Brown stated that the department has about 70,000 lines remaining. "The funding that we had obtained to support that pace, we have not seen that type of funding recently," Brown said, noting that without external assistance, the utility is limited in how fast it can proceed while keeping rate increases at or below 4%. In immediate procurement news, the Board approved a $7.9 million contract with LGC Global, Inc. for lead service line replacements in the Cadillac Heights neighborhood. LGC Global brings extensive regional experience to the project, having previously executed full line replacements in Flint during its Fast Start program and currently managing similar work for roughly 1,000 Detroit properties under an American Rescue Plan Act initiative. Additionally, the Board authorized a $5.6 million contract with EJ USA, Inc. for fire hydrant conversion and parts, and a $338,328 purchase of mini excavators to support field operations. Director Brown also reported that the department recently received $5.7 million in FEMA reimbursements related to the June 2021 flood event, with another $600,000 expected.