Elgin outlines utility fund plan, IEPA loans and PFAS feasibility study as rates rise over five-year plan
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Summary
City finance and water staff presented the utility fund's 2026 budget, multi-year rate increases to cover capital and debt, IEPA loan proceeds, lead-service grants and a proposed PFAS treatability study to evaluate carbon-based removal at the Riverside plant.
City finance and water staff presented a detailed review of Elgin’s utility fund Nov. 19, including projected revenues, debt service, capital needs tied to the water and sewer master plan and a proposed feasibility study to evaluate PFAS treatment options.
Chief financial officer Deb Nawrocki said the city’s 2025 utility fund budget had been planned at $42 million but is now estimated nearer $54 million because of IEPA loan proceeds tied to capital projects. She said the utility fund received multiple grants this year for lead service line replacements and noted PFAS-related settlement funds and other intergovernmental revenue bolstered the year’s totals.
The 2026 draft budget and five-year financial plan include built-in rate increases recommended by a master plan: water rates rise by 9.75% (2026) with additional increases in subsequent years; sewer rates increase by 4% in multi-year increments. Nawrocki said the plan anticipates capital initiatives funded by a combination of general obligation bonds, IEPA loans, impact fees and transfers from the capital improvement fund, while drawing reserves toward a minimum target by 2030.
Water director Nora Bertram described a proposed PFAS treatability study to test carbon-based processes (powdered activated carbon and granular activated carbon) at the Riverside treatment plant. Bertram said Elgin has not detected PFAS in its deep groundwater wells but does detect PFAS in the Fox River likely from wastewater effluent and runoff; the water currently meets proposed federal maximum contaminant levels and the city samples quarterly. She said the study would evaluate carbon types and removal effectiveness, and flagged disposal and evolving regulation around PFAS-bearing residuals as an open question to be addressed.
Why it matters: The utility fund’s capital needs and debt service drive proposed rate increases; PFAS standards coming from the U.S. EPA will require utilities to assess treatment options and costs. Council members pressed staff about long-range debt service projections and tradeoffs in timing of projects.
Next steps: Staff will incorporate the master-plan rate schedule into the proposed 2026 budget, pursue available IEPA loans and grants, and seek council direction on initiating the PFAS feasibility study as part of the capital program.