Blue Island details $10 million water bond, plans meter replacements and large-main projects
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Summary
City staff described how a $10 million water bond will fund tanks, at least one major main replacement and an accelerated meter-replacement program; staff proposed $360,000 for meter installs and said the city is years behind on meter replacement.
City officials used the Feb. 12 appropriation discussion to provide specifics about planned water work funded by a recently issued bond and by other grants. Administration and water staff told aldermen the bond proceeds are earmarked for major capital work and are not treated as general revenue.
The administration described three primary water projects to be funded by bonding and other sources: two reservoir/tank projects (the largest single appropriation within the water package), at least one large water-main replacement (costs staff estimated could be $2 million to $5 million for a single main) and a multi-year program to replace aging water meters citywide.
On meter replacements, staff said the city has about 5,600 water meters and described competing replacement cycles: a 15-year replacement cycle would require ~370 meters per year; a 20-year cycle would require ~270 per year. Staff recommended higher annual replacements to catch up on a backlog and proposed a $360,000 appropriation that staff estimates will cover installations at roughly $350 per meter if outside contractors are used. "When we did the major water replacement for the commercial line, we replaced just under 700 meters over that year and a half period," water staff said, adding that in 2025 the city completed 253 meter replacements in-house with three water operators.
Staff emphasized that wholesale water charges from the City of Chicago are CPI-based and consumption-driven; the city pays for water loss as well as for delivered water. Officials said improving meters and reducing water loss has already improved revenue and the water loss audit, but that main replacements and tank work will be multiyear projects with substantial sticker shock for capital costs.
Bond proceeds for infrastructure were described as received and held in an interest-bearing account, ready for use once procurement and bidding are complete. Council members asked clarifying questions about funding sources and whether water projects could be paid from the general fund; staff reiterated that water is an enterprise fund and transfers would require a council fund-transfer action.