Geneva council OKs nearly $13M in water and sewer bonds

The Geneva City Council has approved nearly $13 million in waterworks and sewerage revenue bonds to address improvements to its utility infrastructure.

The total, roughly $12.9 million, will be a low-interest Illinois Environmental Protection Agency loan with an interest rate of 2.16% and 30 years to pay it back, officials said.

“Specifically, the city plans to utilize the IEPA Water Pollution Control Loan Program,” City Administrator Alex Voigt said. “The ordinance before the city council is the city’s IEPA loan application to support funding improvements to the sanitary sewer system.”

The project includes the construction of a new sanitary sewer river crossing.

About 80% of the city’s sewage passes through a single 20-inch pipe under the Fox River, according to a study presented in 2021. The single 20-inch pipe connects the area west of the river to the treatment plant, according to a study of the city’s sewer and water system.

Building another connection will, among other things, reduce the risk of sanitary sewer overflows, documents show.

The loan is about $7 million less than the proposed $20 million maximum the city council considered in 2024 for the same project.

Officials did not issue the debt at that time. But a maximum for the project had to be set so the city could proceed with the IEPA loan process, officials stated in an email.

The city also sought a $15 million IEPA loan for water main and lead water service line replacements, but that application was denied, officials stated in an email.

In 2023, officials increased the water rate to maintain the system and qualify for an IEPA loan. The river crossing alone is estimated to cost at least $12 million, according to a water and sewer rate study.