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Council hears funding squeeze on Rainbow Ridge–Mill Creek water project; votes to hold neighborhood meeting
Summary
Staff presented two financing scenarios for a proposed Milan water extension: a combined Rainbow Ridge–Mill Creek project (~$1.7M) and Rainbow Ridge only (~$1.2M). Trustees authorized staff to host another neighborhood meeting to firm up Mill Creek interest before the village bids; EPA principal‑forgiveness reductions mean timing matters (staff cited a March 31, 2027 bid‑opening deadline to secure some funds).
Village staff presented two options to extend Milan water service into Rainbow Ridge and Mill Creek: the combined option (both subdivisions) at roughly $1.7 million and Rainbow Ridge only at roughly $1.2 million. Matt, the project presenter, summarized financing scenarios and said the state/EPA principal‑forgiveness amounts shifted since staff’s last presentation: disadvantaged‑community principal forgiveness (30% of project) remains but one‑well principal forgiveness dropped to $408,100, increasing the village’s loan obligation.
Matt said the combined project would leave an annual loan repayment of about $33,879 while estimated revenue under the proposed outside-customer rate structure would cover only roughly $26,563, leaving a shortfall. Staff emphasized the importance of gauging Mill Creek residents’ interest because the number of signups materially changes the project scope and the size of the loan; staff asked the board to authorize another public meeting at the Camden Center to present updated facts and gather signups. Trustees approved the motion to hold the neighborhood meeting so staff could firm up the project scope before advertising for bids. Staff noted the EPA’s timing constraints and said if the village does not reach bid opening by March 31, 2027, some forgiveness could be reallocated elsewhere.
