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Yorkville OKs $170 million loan for Lake Michigan water project · Kendall County News - Shaw Local

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  Speaker 1: Yorkville ox one hundred and seventy million dollar loan for
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  Lake Michigan water project. Written by Joey Weslow. This article
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  is being read by an automated voice brought to you
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  by Everlett. After costs balloon for the Lake Michigan water
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  sourcing project, Yorkville had to go back to the drawing
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  board to cover the costs. The city recently approved borrowing
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  a one hundred and seventy thousand feesian dollar loan from
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  the US Environmental Protection Agency through the Water Infrastructure Finance
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  and Innovation Act WIA. The city had previously received a
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  WIFIA loan of one hundred and thirty nine dollars two
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  million dollars, but it turned out to be far less
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  that what the city needed to cover the project as
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  prices grew due to contracting issues. As it currently stands,
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  the city is eyeing about two hundred and twenty four
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  point four million dollars in total project costs. THEMIFI alone
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  can support up to one hundred and seventy nine dollars
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  and five million dollars of those costs, leaving the remaining
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  twenty percent to be financed through Yorkville's bond issuance and
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  Illinois EPA loan proceeds. The city also previously approved increasing
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  the WIFIA borrowing cap to two hundred and twenty five
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  million dollars, which city staff believe will enable the city
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  to cover any future cost hikes for the project. To
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  help offset the costs for the water infrastructure, the city
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  recently approved higher water rates for users. Residents will face
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  about twenty percent annual increases for at least five years.
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  This is the final step in the process of the
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  WIFIA loan approval. Rob Frederickson, the city's finance director, said
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  during the January thirteenth City Council meeting it will be
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  sent to the EPA and closing as anticipated to occur
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  in the next thirty to sixty days. After that, will
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  fully be able to borrow up to one hundred and
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  seventy million dollars for eligible project costs related to the project.
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  Fredrickson said the loan one has a thirty five year
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  payback from the time of substantial completion, which will take
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  it through twenty sixty five. In consideration of any future
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  water rate hikes, the city must cover one hundred and
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  forty five percent of the Wifia loan debt and the
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  three point five percent interest rate to meet the obligations
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  of the loan. City staff favor using Wiffia loans to
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  cover the project's costs because they carry low interest rates.
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  They also allowed deferred repayment, with interest payments postponed during
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  construction and up to five years after. According to city documents,
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  the city is in a hurry to finish all water
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  infrastructure necessary for the Lake Michigan Water Sourcing Project to
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  receive the first water down the pipeline in the summer
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  twenty twenty eight. To make this happen, all parts of
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  the project need to be completed by twenty twenty seven.
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  The Lake Michigan Water Sourcing Project is a joint venture
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  with costs shared between Yorkville, Oswego, and Montgomery, hooking up
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  to existing water mains near Naperville owned by the DuPage
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  Water Commission. City officials have said the project is necessary
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  because the region's underground aquifer is being used at an
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  unsustainable rate from the region's booming population. As part of
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  the project, Yorkville is constructing new water towers, receiving stations,
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  and working on extending and updating piping and water mains.
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  This includes the North Receiving Station and Storage Tank project,
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  running up an eighteen point sixty three seat million dollar
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  price tag, which will significantly increase the city's water intake capacities.
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  This project includes constructing the Grande Reserve water treatment plant
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  and a two million gallon water tank on Eldemain Road
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  north of Corneil's Road. To begin construction on next year's
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  legs of the Northern project, the city applied for and
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  received a five point three to nine million dollar i
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  ep A loan at a fixed interest rate of two
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  point one six percent over thirty years. The construction also
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  includes a six point eight million dollar project north of
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  Roote one six, east of Wing Road, and south of
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  Illinois Route seventy one. The site will house the South
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  Receiving Station building and the DuPage Water Commission metering station.