LANSING — The city of Gaastra has been awarded a state grant of $298,000 to help improve its water infrastructure, part of $2.7 million being awarded to 16 municipalities through the Financially Distressed Cities, Villages and Townships Grant Program.

The grant will be used to repair a water storage tank.

“The whole community will benefit because these state resources are being used locally,” said State Rep. Greg Markkanen, R-Hancock. “This project will help ensure people have access to clean, affordable water.”

Elsewhere in the Upper Peninsula, the village of Ontonagon will receive $227,995 to replace a fire department rescue truck.

Municipalities can participate in the FDCVT Grant Program if they are experiencing one or more conditions indicative of “probable financial stress” as defined in state law. The grants fund specific projects, services or strategies — including infrastructure and public safety enhancements — that move a city, village or township toward financial stability.

For fiscal year 2021, the Michigan Legislature appropriated $2.5 million for the program, with a $200,000 carryover from the previous fiscal year. The FDCVT Grant Program has a $2 million cap per municipality and grants are awarded based on applications submitted by the municipality.

“This grant program helps those municipalities that have faced recent financial challenges,” said State Treasurer Rachael Eubanks. “Infrastructure and public safety projects are critical services that residents depend on every day. By proactively assisting our local units of government, we are enabling our entire state to thrive.”