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Alsip staff report $16 million IEPA loan application for water-main replacements; mayor warns village could lose nearly $680,000 from grocery-tax change

Village of Alsip Board · March 20, 2025
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Summary

Engineers told the Alsip board the village applied for a $16 million low-interest IEPA loan to fund four years of water‑main replacement; Mayor Ryan also said a state grocery-tax passthrough change could reduce village revenue by about $680,000 annually, and posted draft funding lists are expected in June.

Village engineer Jeff reported during the March 17 Alsip board meeting that the village has applied for a $16 million low‑interest loan through the Illinois Environmental Protection Agency (IEPA) to fund four years of water‑main replacement and related infrastructure repairs.

Jeff said the application has moved forward and that IEPA will post a draft funding list in June with a final list in July. On the loan term, transcripts record an ambiguity: Jeff said something like “20 or 38” years when describing payback options and later noted the financing could include some forgivable elements. He described the application as qualifying, with final award amounts depending on statewide submissions and ranking.

Mayor Ryan placed the loan discussion in the broader context of municipal revenues. He warned the board that a state change to the grocery‑tax passthrough could significantly reduce village income, saying the Village “stands to lose almost $680,000 a year” if the state no longer passes through the 1% grocery tax to municipalities. He said the village might reimplement a local fee but emphasized the shared statewide impact on municipalities.

The board did not take a separate vote on the IEPA application at the March 17 meeting; Jeff characterized the village as having qualified and said the precise award and term will depend on IEPA’s final ranking and available funds.

The engineer also noted a steering‑committee meeting for the village bicycle and pedestrian plan scheduled for Wednesday, March 26 at 4 p.m. The meeting packet and the IEPA draft funding list are expected to be posted publicly once available.

Next steps recorded in the meeting: monitoring IEPA draft and final lists (June/July) and awaiting final award notifications; no final loan contract was approved at the March 17 meeting.