The city of Benton Harbor is likely to be asked to reprioritize some of the water system projects it has scheduled so that the most critical ones are completed before a state grant to pay for the work runs out.

The city Economic Development Committee this week heard from Jason Marquardt of Abonmarche, who said the Michigan Department of Environment, Great Lakes, and Energy has been conducting a review of its administrative consent order with the city. He’s expecting EGLE to seek changes to the order.

“We have projects slated in the distribution system,” Marquardt said. “We have these water plant projects that you all are already working on, and EGLE will potentially ask the city to reprioritize those so that you can hit the items on this new ACO.”

Marquardt said some work at the water treatment plant has come in over budget, so EGLE is likely to recommend moving some grant dollars away from distribution system improvements to the plant. Another thing EGLE wants addressed is a plan from the city to financially right size the water plant.

“The city’s been doing a technical manager and financial capacity study. It was submitted in 2023 showing the shortfall of revenue gap at the water plant. So EGLE still considers that not completed because it’s still not showing that the water plant can fund with the customers they got.”

Marquardt said some work at the water treatment plant has come in over budget, so EGLE is likely to recommend moving some grant dollars away from distribution system improvements to the plant. The city is using funds included in a 2022 state budget amendment to do all of this work.

Marquardt did say the city has been addressing most of EGLE findings from a previous review that led to the order. Some that remain include plans for hydrant flushing and cross connections, as well as that capacity study for the water plant.