Michigan restricted Flint from switching water in loan deal

LANSING, Mich. (AP) — The state of Michigan restricted Flint from switching back to Detroit's water source under the terms of a $7 million loan to help transition the city from state management, according to a document released today.

The April loan agreement, obtained by the state Democratic Party through a public-records request, said Flint could not enter an agreement with its former water supplier without approval from the state treasurer. The agreement with Republican Gov. Rick Snyder's administration also prohibited the city, which was having numerous problems with water from the Flint River, from reducing water and sewer rates unless authorized by the state.

Flint's state-appointed emergency manager said at the time that switching back to the water source would cost the city more than $1 million and that "water from Detroit is no safer than Flint water."

"The Snyder administration effectively put a financial gun to the heads of Flint's families by using the emergency manager law to lock the city into taking water from a poisoned source," party chairman Brandon Dillon said in a statement.

Roughly six months after limiting Flint's options, the state helped it return to Detroit's water system once it became clear that lead had leached from aging pipes into homes and businesses.