Kankakee discussions focus on hydro plant funding and bond refinancing opportunities

In a recent meeting of the Kankakee City Council, city officials outlined significant financial plans and updates regarding the Environmental Services Utility (ESU) and infrastructure improvements. The discussions highlighted the ongoing efforts to enhance the city’s hydro plant and address critical sewer system issues.

City officials revealed that the hydro plant project has already consumed over $1 million of American Rescue Plan Act (ARPA) funds, with an additional $2 million anticipated to complete the work. The first two turbines are expected to be operational by mid to late September, with plans to rehabilitate a third turbine by the summer of 2027. This project aims to boost energy production for Kankakee, potentially generating revenue for the city.

In addition to the hydro plant, the council discussed the need for $1.5 million dedicated to inflow and infiltration (I&I) work in the sewer system. This includes essential repairs such as manhole cover replacements and sewer lining services, particularly in the Basin 9 area, which encompasses parts of the city north of Court Street. The city plans to allocate approximately $585,000 for immediate repairs this year, with further investments scheduled for the coming summers.

The council also explored the possibility of refinancing a 2013 bond, which could yield savings of around $100,000 if interest rates remain favorable. This refinancing would not extend the bond's timeline, allowing the city to maintain its financial commitments effectively.

Additionally, the meeting touched on the urgent need for a new salt storage facility, with plans to utilize insurance funds and capital reserves to cover the estimated $114,000 cost. The city aims to expedite this project to ensure adequate salt supplies for the upcoming winter season.

As Kankakee moves forward with these initiatives, city officials remain focused on improving infrastructure and managing resources efficiently, ensuring the community's needs are met while navigating financial challenges. The council's proactive approach reflects a commitment to enhancing the quality of life for Kankakee residents.