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Published: Wednesday, 5/9/2001

Hudson gets OK to make upgrades by selling bonds

HUDSON, Mich. - City officials will fund major improvements to Hudson's antiquated water system with a low-interest loan from the state, voters decided yesterday.

Residents approved a proposal to sell up to $2.3 million in revenue bonds to pay for upgrades to the city's water system and build an iron removal facility. It passed with 293 people voting for the issue and 64 voting against it.

City clerk Kim Murphy said the wide margin is encouraging, because it shows most of the city will support spending the money. “This issue is important because it's been 1965 since anything was done to the system, and it is badly in need of repairs and improvements,” said city Manager Mark Knoblauch.

Council members in this southwestern Lenawee County community worked for more than two years to secure state funding for the improvements. The city was approved in the fall to receive money at a 2.5 percent interest rate.

To take advantage of the state aide, the city was planning to sell up to $2.3 million in revenue bonds and pay back the loan in increments of $114,182 per year for the next 20 years.

The loans will be paid back in part from the city's income tax fund and in part by tacking on $14 to each resident's quarterly water bill.

A petition submitted by residents in February ensured that the final say would be in the hands of the voters.

The project, which has been bid out for $1.85 million, includes building an additional 6,000 linear feet of water mains. The city's water tower, built in 1965, will be cleaned and updated.

Construction of an iron-removal facility to clean up the city's water and rehabilitation of all four wells, including installation of a pumping and electrical control system, is included in the project.

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