TO: Mayor and City Council
FROM: Allison Swisher, Director of Public Utilities
SUBJECT:
title
Ordinance Authorizing the City of Joliet to Borrow Funds from the IEPA Public Water Supply Loan Program for Joliet Water System Improvements Required for Implementation of the Alternative Water Source Program
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BACKGROUND:
The City of Joliet’s existing water source, the deep groundwater aquifer, will be depleted to the point of not being able to meet the City’s maximum day water demands by the year 2030. In January 2021, the City Council selected purchasing Lake Michigan water from the City of Chicago as its alternative water source. In order to receive Lake Michigan water, the City needs to make improvements to its water system such as addition of pumping and storage facilities and distribution system improvements. The City’s funding strategy for these projects is a mixture of federal and state low interest loans.
In order to be eligible for IEPA SRF loan funding from the Public Water Supply Loan Program, the City is required to pass a Debt Authorizing Ordinance. The ordinance authorizes the City to borrow up to but not exceeding $100,000,000.00 for the following projects:
• JOL-08-02 Elevated Storage Tanks (West and Central/Southeast)
• JOL-08-03 Booster Pump Stations/Upgrades and Morgan Street Pressure Reducing Valve
• JOL-08-04 Distribution System Improvements
The final loan amounts will not be determined until after each project is bid. Upon completion of project bidding, a loan application will be submitted to the IEPA for each project. A resolution authorizing the Mayor and City Manager to enter into the loan agreements will be approved prior to the start of each project. The money will not be officially borrowed until the time that the loan agreement is signed.
The Finance Committee will review this matter.
CONCLUSION:
The Administration is requesting approval of the attached Ordinance authorizing the City of Joliet to borrow funds up to $100,000,000.00 from the IEPA Public Water Supply Loan Program for Joliet water system improvements required for implementation of the Alternative Water Source Program.
RECOMMENDATION:
recommendation
Based on the above, the Administration recommends that the Mayor and City Council approve the attached Ordinance authorizing the City of Joliet to borrow funds up to $100,000,000.00 from the IEPA Public Water Supply Loan Program for Joliet water system improvements required for implementation of the Alternative Water Source Program.
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