Detroit Water Tussle Avoided in Flint Pipeline Debt: Muni Credit
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The biggest Michigan municipal-bond sale since Detroit’s bankruptcy will allow another locality under emergency management to sever ties with the Motor City’s water and sewer system.
Flint, 68 miles (109 kilometers) northwest of Detroit, partnered with three nearby counties to form the Karegnondi Water Authority. The agency will use proceeds from yesterday’s $221 million tax-exempt debt offer to build a 63-mile pipeline to Lake Huron that by 2016 will wean more than 500,000 people from reliance on Detroit for water.