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Michigan Sewer Treatment and Water Pollution Bond, Proposal 2 (2002)

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Michigan Sewer Treatment and Water Pollution Bond, Proposal 2 (2002) was on the November 5, 2002 election ballot in Michigan as a legislatively-referred state statute, where it was approved.

Election results

Proposal 2 (Sewer Treatment and Water Pollution Bond)
Approveda Yes 1,774,053 60.2%

Official results via: The Michigan Secretary of the State

Text of measure

The language that appeared on the ballot

The proposal would:

1. Authorize the State of Michigan to borrow a sum not to exceed $1 billion to improve the quality of the waters of the state by financing sewage treatment works projects, storm water projects and water pollution projects.

2. Authorize the state to issue general obligation bonds pledging the full faith and credit of the state for the payment of principal and interest on the bonds.

3. Provide for repayment of the bonds from the general fund of the state.[1]

House Fiscal Agency Analysis

If voters approve Proposal 02-2 at the November 5 general election, General Obligation Bonds totaling $1 billion could be sold. Public Acts 396, 397, and 398 of 2002 (enacted House Bills 4625, 5892, and 5893) would implement language allowing revenue derived from the sale of these bonds to be used to finance sewage treatment works projects, storm water projects, and nonpoint source pollution projects.

Annual bond sales could not exceed $100 million. Assuming that each $100 million issue would be sold with a 5% interest rate and would be repaid over a ten-year period, annual debt service payments from the state's general fund would initially be $12.7 million. If subsequent sales were to occur every two years, debt service obligations would rise to $63.6 million in year ten of the program.

Local governmental units would borrow funds for sewer infrastructure projects from the State Revolving Fund, and repay these loans over a 30-year period at a subsidized interest rate.[1]

See also

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