East Dundee board backs moving forward on century-old standpipe rehab, seeks IEPA loan with bond backup

Village of East Dundee officials directed staff on Feb. 2 to pursue rehabilitation and repainting of the village’s standpipe this year and to prepare contingency bond financing if a low-interest Illinois Environmental Protection Agency (IEPA) loan is not awarded.

Public works staff said the standpipe is more than 100 years old and needs structural repairs — including foundation crack repairs, spot-coating failures, anchor-bolt repairs and work on an overflow flap gate valve — as well as repainting. The work was described as critical to maintaining water pressure between the village’s two service zones.

"The standpipe itself is over 100 years old, and it's been improved/rehabilitated through the years," a village staff member said, noting cracks in the foundation and worn coatings. The staff member said the village had Dixon Engineering inspect the structure and that repairs were recommended.

The village will apply for the IEPA Public Water Supply loan (application due March 31). Staff said the IEPA loan rate is “slightly under 2%,” making it the preferred financing option. If the IEPA award is unsuccessful, staff recommended pursuing a municipal bond to start the work this year rather than defer it and risk emergency repairs.

Officials estimated the standpipe-only project at about $1.1 million. Staff presented a bundled-bond scenario that would combine the standpipe with next year’s water tower work and lead-service-line replacements, producing a borrowing total in the $2.5–3 million range. That scenario would spread debt over 20 years and was estimated at roughly $300,000 per year, to be paid from the water and sewer fund.

Village staff also noted the scope of potential lead-service-line work could raise the total further: there are more than 350 lead services remaining, and replacing many of them could push project totals into the $3–4 million range.

Trustees expressed urgency about addressing the standpipe, citing the risk of more costly emergency repairs if the work is deferred. Several trustees voiced support for proceeding with the loan application and for a bond contingency if needed.

The board did not take a formal bond vote on Feb. 2 but provided direction for staff to proceed with the IEPA application and to return with bond analysis and options if the loan is not awarded. The IEPA application timetable means the village will not know the award outcome until mid-summer; staff said they must begin contracting this spring to meet project scheduling.

The board also briefly discussed the standpipe’s appearance and agreed, in principle, to keep the current color and avoid adding a logo to address neighbors’ concerns.

Next steps: staff will submit the IEPA application by March 31 and, if the loan is not awarded, will prepare bond scenarios and return to the board with financing options.