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Board discusses possible EPA principal-forgiveness funding for Rolling Meadows connection
Summary
Staff reported that Rolling Meadows — a neighboring system with a single well — may qualify for EPA principal-forgiveness loan components to fund an interconnection; board discussed whether the loan would be held by Davis Junction or Rolling Meadows and timing contingent on federal/state allocations.
Board members discussed the possibility of connecting the Rolling Meadows water system to Davis Junction and whether the project could qualify for EPA principal-forgiveness funding. Staff explained eligibility hinges on the receiving community's circumstances and the scale of construction: "So since they only have 1 well, they would qualify for that principle," the Public Works Director said, describing one eligibility pathway.
Trustees queried whether the loan would be Davis Junction's obligation or Rolling Meadows', and staff said it could technically be either, depending on the structure of the application and agreements. The board noted that final funding availability depends on federal and state budget allocations and expected that clarity on program funding would be better by June when EPA finalizes budget and obligations. Staff said they will further investigate interconnection costs, potential loan forgiveness scope and whether the project can be structured so the smaller system carries the loan if appropriate.
Any decision to proceed will require engineering cost estimates, legal agreements and a determination of which entity would apply for and manage any loan or principal-forgiveness award.
