Geneva ready to borrow $12.5 million for sewage-plant work

Geneva is preparing to borrow up to $12.5 million to pay for improvements to its sewage treatment plant.

The city council will vote on the matter Tuesday after aldermen gave preliminary approval earlier this week.

The city would apply for a loan from the Illinois Environmental Protection Agency.

The proposed ordinance says the state has offered to loan the city the money, "to be evidenced by waterworks and sewerage revenue bonds." A state spokesman did not return a phone call Friday seeking an explanation of "to be evidenced." Information was not available from the city, either.

If the council approves the ordinance, voters would have 30 days to force a backdoor referendum on the question of whether the city should borrow money for the project. They would need signatures from at least 1,639 registered Geneva voters to get the referendum.

The state currently charges a 1.75 percent interest rate, which it sets annually in June. A final rate will be determined when the loan closes.

The city plans to start construction this spring and be finished by December 2018, city spokesman Kevin Stahr said.

The city would then start repaying the loan over 20 years. The money would come from what it charges sewer and water customers.

The work is being done to improve the plant's ability to remove phosphorus from the sewage it treats. The federal government enacted rules several years ago lowering the amount that can be in treated sewage discharge water sent into lakes, rivers and streams.

Phosphorus is a nutrient. High levels of it cause algae bloom and the growth of other organisms that can deplete oxygen levels in water, leading to the death of fish and other organisms.