The City of Kalamazoo is applying for a Drinking Water Revolving Fund loan from the State of Michigan for assistance with the Parchment Pressure District of the City of Kalamazoo Water System. The funding will be used for lead/galvanized water service replacements. The project plan is requesting funding assistance of $1.794 million. A direct rate impact for this project plan would be 0.5%, however no rate adjustments will be made due to this project. This funding opportunity is being pursued due to the potential for principle forgiveness which would lower the loan amount. Additionally, Drinking Water Revolving Fund loans offer bond rates lower than what the City could obtain on the open bond market.