Joliet council adopts ordinance authorizing up to $145 million in waterworks and sewerage revenue bonds

The Joliet City Council voted Tuesday to adopt an ordinance authorizing the issuance of up to $145,000,000 in Waterworks and Sewerage senior‑lien revenue bonds to finance major water and sewer system improvements, officials said.

City finance staff told the council the borrowing would fund roughly $87 million in work to accept Lake Michigan water, about $36 million in costs tied to the Grand Prairie Water Commission project, and roughly $11 million for required debt‑service reserves. The bonds will be repaid from sewer and water rates, and the city expects interest rates to be below 6 percent under the planned structure.

“The $145,000,000 is designed to fund about $87,000,000 of our improvements to accept Lake Michigan water for sewer and water,” a city staff member identified in the meeting as Kevin said during the finance briefing. He described a monthly finance team that reviews project status and financing options and said the city would consider other tools — including revenue bonds, letters of credit and state SRF or EPA loans — to try to minimize rate impacts.

Councilors approved the ordinance in a roll‑call vote. The ordinance authorizes issuance of the bonds with terms up to 30 years; no specific bond issue date or series number was provided at the meeting. Finance staff said the issuance is part of a multiyear financing plan the city has been discussing and that the city has programmed the borrowing into its rate studies.

Councilors did not set new rates at the meeting; staff said repayment will come from existing and planned sewer and water rate structures already factored into recent rate studies.

The ordinance vote was recorded as unanimous. The council did not discuss an ordinance number during the meeting record provided.