Lake Zurich takes ‘historic’ steps toward transition to Lake Michigan water
Switch to new water source could cost up to $154 million
In what was described as a historic moment, Lake Zurich this past week approved measures cementing the intent to bring Lake Michigan water to town, a transition that could cost up to $154 million.
In separate actions, the village board unanimously agreed to join the Central Lake County Joint Action Water Agency, which will supply the water; approved a $300,000 study to determine the best route to get it there; and, agreed to put a referendum on the November ballot to increase the non-home-rule sales tax to help defray costs to water users.
“This is a big one,” Trustee Marc Spacone said of the ordinance to become the 14th member of CLC JAWA, which began operating in 1992. “We’ve done study after study after study, and rightly so.”
Joining the agency gives the village full voting rights into future decisions.
Transitioning from deep wells to Lake Michigan water has been analyzed and discussed in Lake Zurich since at least 2011 when the village was granted a conditional Lake Michigan supply allocation from the state.
Costs associated with removing radium and barium, liability for the removed material and the uncertainty of the deep well aquifer’s long-term viability led officials to consider Lake Michigan water as its water source.
“We’ve got environmental factors, we've got regulation that comes into play with the disposal of the radium and of course, sustainability,” said Public Works Director Mike Brown.
Village Manager Ray Keller said the determination involved “an exhaustive evaluation of the options of staying on the deep water aquifer” and the conclusion that Lake Michigan was “a much more reliable, sustainable source of water long-term for the village.”
Keller said many communities who want Lake Michigan water were waiting to see whether Lake Zurich fell through or followed through.
“We’re at a use it or lose it situation with our allocation at this point,” he said.
Spacone described the years of study as planting seeds to enjoy fruit later.
“There are future generations of Lake Zurich residents that are going to thank us for making this decision today and all the work we've put in,” he said.
Trustee Greg Weider said the village was at “a very important crossroads in our history.”
But there will be a price.
“I understand it's going to hit people but we have no other choice,” said Trustee Roger Sugrue.
The most recent construction estimate for the system is $154 million if built in 2026-27. The village would need about $7.4 million annually for 30 years starting in 2028 to pay off loans and other charges from the Illinois Environmental Protection Agency and CLC JAWA.
Keller said increasing the sales tax to 1% would generate $2.5 million to $2.7 million a year allowing the village to be less reliant on water rate increases to cover the debt.
However, even if voters approve the sales tax measure, monthly bills would increase by $50 for a medium household and $90 for a large one.
“It's monumental. It’s historic,” Dominic Marturano, CLC JAWA chair and mayor of Lindenhurst told the Lake Zurich board. Lindenhurst began receiving Lake Michigan water in 2018.
“What you're doing tonight, although cost is always a factor, will be the best decision you'll ever make for the community,” he said.