Zion council authorizes application and ordinance to seek state loan for service‑line inventory and replacement

Zion’s City Council on June 4 authorized staff to move forward with an application to the Illinois Public Water Supply Loan Program and passed an ordinance allowing the city to borrow funds to inventory and replace galvanized and lead service lines.

Director Roberts told the council the packet requests $5,278,000 with a 30‑year term to cover design, construction engineering and an initial replacement estimate. Staff said program rules allow for up to 80% loan forgiveness depending on low‑income census criteria but emphasized that the city would be responsible for 100% of the service‑line replacement cost absent forgiveness. Council voted unanimously to authorize submission of the application and to approve the ordinance.

Councilmembers asked several budgeting and repayment questions. Staff estimated that if the loan received no forgiveness, annual repayment could require roughly $200,000–$300,000 drawn from water infrastructure line items, which would reduce the city’s annual replacement capacity. Roberts said the current inventory effort is approximately 75% complete and that the requested loan amount is conservative to cover higher‑density areas until the inventory is finalized.

Why it matters: the proposal is intended to accelerate identification and replacement of lead or galvanized service lines — a public‑health and infrastructure priority in many Illinois communities — while using a low‑interest, long‑term loan to finance design and construction. The council’s action allows staff to complete the application process and pursue potential forgiveness that would reduce the city’s out‑of‑pocket costs.

What’s next: staff said they will complete the inventory and finalize the loan submission; subsequent budget adjustments would be considered in the water fund for repayment if forgiveness is not awarded.