Good afternoon,
Water service lines are the lines that extend from the public water main and serve the individual houses or other buildings. Typically, these lines are the responsibility of the property owner to maintain. Because of the risks associated with lead service lines, legislation requires the replacement of all lead service lines by the water system owner.
The Village has applied for a loan from the Illinois Environmental Protection Agency (IEPA) for Lead Service Line (LSL) Replacements. This is separate from the Lead Service Line Inventory Grant that the IEPA is considering for the Village in the amount of $40,000. With the anticipated schedule, the lead service lines in the village is currently required to begin LSL replacement by 2027.
It is currently estimated that this project could cost as much as $4,129,000 depending on the extent of the service lines that are lead and will need to be replaced. The actual number of lead service lines will be determined by the LSL inventory. This requested loan from the IEPA’s Public Water Supply Loan Program (PWSLP) offers provisions and incentives for the program such as reduced interest rates, principal forgiveness and extended repayment periods.. The IEPA has determined Peoria Heights is eligible for the small business community interest rate and the environmental discount reduction in the interest rate . The IEPA also has a limited amount of funding for Lead Service Line Replacements at 100% principal forgiveness. The IEPA is currently considering Peoria Heights for 100% principal forgiveness , or if funds are exhausted 49% principal forgiveness.The Loan repayment is currently anticipated from increased user fees as indicated on the attached PEID
For this project to be included in the IEPA scoring process for the upcoming Intended Funding List, The Village is required to advertise the attached notice, hold a public hearing (Currently scheduled for March 21,2023 at 5 pm) and allow a 10 day public comment period. As this loan may offer principal forgiveness and favorable interest rates, this loan allows for an excellent funding source for the replacement of lead service lines in the village. The staff recommends the pursuit of funding from this IEPA Loan program and the required public hearing process.
If you have any questions, please contact me.
Thanks,
Wayne
Wayne Aldrich, P.E.
Community Development Director
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