Detroit’s Plan to Rebuild the Broken Streetlight System
The new Public Lighting Authority of Detroit is beginning a three-year plan to rebuild Detroit’s streetlighting system and downsize it to a more manageable 46,000 or so fixtures.
The authority plans to finance its project by borrowing about $210 million. The money would come in the form of a $60-million short-term loan and a $150-million bond issue whose proceeds would repay the loan.

Detroit streetlight maintenance worker Leonard Robinson changes out streetlights and photo cells on Sussex Street on Detroit’s west side on Sept. 30. As many as 40% of the city’s 88,000 street and alley lights are estimated to be out. Ryan Garza/Detroit Free Press
This plan would get Detroit about halfway to the estimated $300-million price tag that McKinsey & Co. consultants once estimated for a full overhaul of the streetlighting and electrical distribution systems.
A yet-to-be hired contractor would work ZIP code by ZIP code through the city replacing cables, equipment, substations and old lights. Once crews finish rebuilding a ZIP code area, responsibility for maintaining those lights would transfer to the authority from the lighting department, which would eventually phase out.
The authority began work last week on two demonstration projects in the city.
As part of the overall plan, the City of Detroit is scheduled to exit the electricity business and hand its customer accounts to DTE Energy.
Odis Jones, the authority’s executive director, said the lighting authority would, at least initially, use contractors rather than a large in-house staff.
The lighting authority intends to back its bonds with a $12.5-million-a-year portion of the tax
collected from Detroit utility customers. The tax, which generates about $40 million annually, has historically gone to hiring and retaining Detroit police officers.
To avoid cuts to public safety, the state Legislature allowed Detroit last year to keep city income taxes at 2.4% for residents and 1.25% for nonresidents, rather than dropping them, as scheduled, by one-tenth of a percent.
One potential lender, Citigroup, has asked the authority to obtain an order from U.S. Bankruptcy Judge Steven Rhodes as assurance that the utility tax revenue stream wouldn’t be taken away in bankruptcy reorganization. A hearing is scheduled for Nov. 27.
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