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Council introduces ordinance to allow 50% advance payments on ERC projects

Elwood Board of Works and Common Council · August 4, 2026

Summary

Ordinance No. 25‑13 was introduced to permit advance payments (capped at 50% with ERC approval) to help local contractors manage cash flow; council granted unanimous consent to consider the ordinance on the same night it was introduced.

Council introduced Ordinance No. 25‑13, which would authorize advance payments for certain ERC‑approved projects. The clerk explained the statutory framework and the procedural safeguards: the ERC must approve any advance and the city may pay up to 50% of the project cost up front after invoicing and certification by the submitting entity.

Using a hypothetical example, the clerk said, “So say the project for paving is $1,000 Then they say, well, we want 50% paid upfront.” Council and staff discussed that the change aims to make it easier for local contractors — who may not have the liquidity to cover large, up‑front costs — to bid competitively. City counsel noted the ordinance explains the statute to clarify the process and includes enforcement provisions for violations. Council then moved for unanimous consent to consider the ordinance the same night and recorded ayes with no opposition.

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