Saignow City in Michigan, U.S. has borrowed US $5.2 million for city projects including vehicle and LED streetlight upgrade project, according to a MLive report.
The city’s loan plan to achieve a long list of capital needs was approved by the city council in August.
However, city staff assured local citizens the projects would not cost Saignaw’s general fund any money. The city expects net savings for its main discretionary fund.
Energy savings from LED streetlights installed are expected to pay for the general fund’s portion of payments on the bonds, explained Public Services Director Phil Karwat.
Public Services Director Phil Karwat explained that ongoing energy savings due to the much more energy-efficient LED streetlights installed as part of the project will more than pay for the general fund's portion of payments on the bonds.
At a meeting on Sept. 14, 2015, the city council approved US $1.2 million purchase of LED light fixtures, which is enough to replace 6,000 city streetlights. City representatives also approved the LED streetlight installment contract worth $612,411.67 to a Frankenmuth Township company.
The streetlight project will cost less than $ 2 million for the city to install.
In addition to the streetlight upgrade project $2.7 million will be spent on procuring vehicles such as garbage trucks, sweepers, and other vehicles.
Most of the costs will be covered by lighting annual energy savings from the completed retrofit project. The city expects additional annual savings to amount to $140,000 after making its bond payments.
New LED streetlights are expected to use on average 68% less energy than high pressure sodium streetlights for the same level of illumination. About $650,000 annual budget will be used to light up city streets and save the city about $440,000 per year through the transition.
The streetlight retrofit project will start from November 2015, and expected to completed by March or April 2016.
