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Macomb council approves up to $45 million IEPA loan for public water improvements
Summary
The City of Macomb authorized applying for a Public Water Supply Loan Program loan through the Illinois EPA to finance water system improvements; the ordinance estimates construction costs at $41 million and authorizes up to $45 million in principal to be repaid from system revenues.
The City of Macomb voted to adopt an ordinance authorizing the city to seek a loan through the Illinois Environmental Protection Agency Public Water Supply Loan Program to fund improvements to the public water supply.
The second-reading ordinance, read by the city clerk, said the estimated construction and installation cost of the project, including engineering, legal and related expenses, is $41,000,000 and authorized borrowing in an aggregate principal amount not to exceed $45,000,000. The ordinance specifies repayment ‘‘solely from the revenue derived from revenues generated by the system,’’ and authorizes the mayor to apply for and execute a loan agreement with the Illinois EPA.
Alderman Dorset described the measure as an important step to getting a ‘‘very important project going,’’ adding, ‘‘this is just not something you build out of pocket.’’ The council moved to adopt the ordinance, and the motion passed on a roll call vote with all members voting in favor.
Why it matters: the loan, if awarded, will provide the bulk of funding for water-system construction and related costs; the city legally limits repayment to revenues from the water system rather than the general fund.
What happens next: the mayor is authorized to apply for the loan and to execute the loan agreement if the Illinois EPA offers financing. The ordinance includes publishing requirements and standard conditions regarding use of the loan funds for the approved project.
