Road Funding
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The 2009 Federal economic stimulus package, known as the American Recovery and Reinvestment Act, will provide funding to units of government to make needed infrastructure improvements and stimulate job creation. Funding processes and procedures have been developed for roadway improvement projects; and it is expected that funding rules for transportation enhancement projects (i.e., sidewalks, bike paths and trails) and water/sanitary sewage projects will be forthcoming.
In early 2009, the City of Novi was awarded economic stimulus funding for three roadway projects listed in the City’s Capital Improvements Program (CIP) totaling $1,325,600. Roadway funds are 100% grants for the construction work, with local match for design engineering and testing costs only.
We anticipate that funding for transportation enhancements will be handled in a manner similar to road projects (i.e. 100% grants with minimal local match). The City is also evaluating potential water and sewer projects that may qualify for economic stimulus funding. Unlike road projects, water and sewer projects may be funded using capital charges collected or low, zero or negative interest loans through the State of Michigan’s existing Drinking Water Revolving Fund and Clean Water State Revolving Fund, respectively. Key requirements of the Act call for projects to be under construction within 180 days and completed within 365 days of the date that final rules are promulgated.