Geneva council OKs up to $12.95 million IEPA loan for sewer system improvements
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Summary
Council approved Ordinance 2026-05 authorizing waterworks and sewerage revenue bonds not to exceed $12,949,750 through the IEPA water pollution control loan program at an interest rate of roughly 2.16% and a 30-year term; bonds were described as junior lien payable from net enterprise revenues.
The Geneva City Council voted to authorize the city’s IEPA loan application to finance improvements to the sanitary sewer system, approving Ordinance 2026-05 (not to exceed $12,949,750).
City staff explained the financing will use the Illinois Environmental Protection Agency (IEPA) water pollution control loan program, a long-term low-interest option; staff said the city’s interest rate under the program would be about 2.16%. Staff also described the bonds as junior lien debt, meaning payments will be made from net enterprise revenues after operation and maintenance costs and any senior lien obligations. The loan term discussed by staff is 30 years, an extension from prior typical 20-year terms.
During council questions Aldersperson Pesci asked for clarification on the repayment mechanism and the staff representatives (superintendent Van Gescombe and Director Malevskiy) described the order of revenue application and the longer amortization period. The ordinance passed on a roll-call vote, 9-0, with one member absent.
Why it matters: The approved loan will provide capital funding to repair or upgrade the city’s sewer infrastructure; the junior-lien structure and long amortization reduce annual debt service but rely on enterprise revenues for repayment.
What’s next: Staff will submit the IEPA loan application and return with final loan documents and related contract approvals if the city is selected in the IEPA funding process.
