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Palatine accepts IL EPA forgivable loan award to investigate and replace lead service lines in two zones
Summary
Council approved authorization to accept a forgivable loan/grant of up to $3,027,000 from the Illinois EPA to investigate and replace lead water service lines in two specified areas; staff said the award is forgivable, not village debt, and a voluntary replacement program is ongoing.
The Palatine Village Council authorized staff to accept a forgivable loan/grant from the Illinois Environmental Protection Agency of up to $3,027,000 to investigate and replace lead water service lines in two state-defined geographic areas.
Staff told the Business, Finance and Budget Committee the award covers two zones — one bounded by Northwest Highway, Smith, Dundee and Hicks Road; the other east of Old Hicks and north of Buffalo Creek — selected to meet the state’s funding parameters. The village will not incur debt: the state administers the award as a forgivable loan/grant, and the council will return for approvals before any specific contracts are awarded.
Staff asked the public and council to note this award is a targeted, state-driven program rather than an unrestricted pot of funds. The village plans to use the state funds to test service lines at the shutoff valve and, where lines are confirmed as lead, coordinate replacements with property owners. For qualifying properties covered by grant funding the village said the replacements would be 100% grant-funded and no local cost-sharing would be required.
Village staff said the municipal voluntary lead service-line replacement program has already produced more than 50 homeowner-initiated replacements. Staff estimate the village has roughly 550 to 600 lead service lines remaining; village presentations estimated a total replacement cost on the order of $6.5 million to $7 million across the system, though staff said those figures will be refined as testing and program design proceed.
Council members asked whether replacements on multifamily properties would be coordinated with owners; staff said the village will test at the curb valve and then work with homeowners or property owners to schedule replacements. Staff also confirmed Palatine continues to use orthophosphate treatment as a corrosion-control measure in the distribution system.
The committee vote was unanimous; the item was placed on the council consent agenda for final approval. Staff said they will continue to update the council as the state finalizes program rules and as staff refines an implementation plan.
