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Trustees face $5M shortfall on lead service line work; staff to draft ordinance for homeowner cost-share
Summary
Staff told trustees phase-two and -three loan funding is unlikely to be available, leaving roughly $5 million unfunded; trustees signaled support for a draft ordinance to add a modest capital charge (staff proposed $27 bimonthly for affected properties) with the village covering the remainder.
Trustee Yuska told the committee the village secured a $3 million loan for phase one of its lead service line replacement program, but changes to funding parameters mean the village likely will not qualify for loan funds for phases two and three. "We were able to secure a loan for the first phase... but they have changed the parameters and we no longer are in a position to qualify for those monies to be used to replace the lead service lines for phase 2 and 3," Trustee Yuska said.
Staff and consultant Caitlyn Wright of Baxter Woodman told trustees there is no one federal or state rule that requires the village to pay for private-side replacements; nearby communities have used different models, including paying 100% of costs, spreading costs through rate increases, or cost-share caps (for example, municipal coverage up to a capped homeowner contribution). Wright explained the state awards loan funds using a loan-priority score based on census-tract data; West Dundee's ranking fell below this year's funding cutoff.
Trustees discussed the program27s scale and costs: staff estimated about 460 service lines need replacement, with an approximate total program cost in the multi-million-dollar range and an estimated per-house replacement cost of about $13,000. The board was told phase-one loan terms produce roughly a $230,000 annual debt service obligation. To close the funding gap, staff presented an alternative that would ask homeowners with replaced lines to pay roughly $5,000 of the cost amortized over 30 years (about $25 per bimonthly bill) while the village would cover the remaining roughly $8,000 per service line.
The board conducted a nonbinding straw poll and directed staff to draft an ordinance that would amend the village's capital charge for those affected properties; staff said the draft will propose a $27 bimonthly charge for properties receiving replacements, with the village covering the remainder of capital costs. Trustees emphasized urgency because contractors are prepared to begin work and because phase-one residents were previously told replacements would be no cost to them under the loan assumptions.
Staff also cautioned that replacement is site-specific: while much of the work is typically trenchless and limited to pits at the curb and near the exterior shut-off, property owners may face additional landscaping or restoration costs depending on their lot and porch configurations. Trustees directed staff to return a clear ordinance and a comparative table of options for the full village board next week.
No formal ordinance was adopted at this meeting; the board set the issue for a full-board vote next week and asked staff to prepare clear, dated materials that show the fiscal impacts and billing mechanics.
