Big-ticket water and sewer infrastructure work, including replacing some of the city’s lead water pipes, top the list of projects on which Elgin could use the $19.5 million it’s receiving from the American Rescue Plan Act, city officials said.
“I think your priorities are spot on,” Councilwoman Rose Martinez to City Manager Rick Kozal Wednesday as he laid out funding options to the Elgin City Council.
Kozal said the most expensive things the city needs to address involve water and sewer infrastructure projects. It would be ideal if they could earmark one-third of the federal funding for the lead water pipe replacement program, one-third on combined storm water and sewer separation projects and one-third on other projects, he said.
The city has more than 10,000 properties with lead service lines, Kozal said. They’ll be able to replace about 400 this year and another 400 next year using $6.5 million of the money received.
Elgin is also seeking a $4 million grant from the Illinois Environmental Protection Agency for line replacement work. It’s been estimated it will cost more than $100 million to replace all of the lead lines.
The lead pipelines are in homes and businesses built before 1980. While safe when left untouched, the pipes can release cause health problems like brain damage in children and cardiovascular, kidney and reproductive problems in adults when jarred, such as during road construction.
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“One of the discussions we’ve had ongoing for a couple of years is replacing the lead service lines, and how to provide it to homes that could not afford it,” Mayor David Kaptain said. “And this is an opportunity to do that.”
Another major infrastructure project is replacing the city’s antiquated combined storm water and sewer lines, which can result in raw sewage being dumped into the Fox River during large rain storms. The city uses the river as a major source for its drinking water.
Many of those lines have been replaced, but it will cost about $90 million to complete the work, Kozal said.
“Nineteen million sounds like a lot of money. It is a lot of money until you start throwing large capital projects like lead pipe replacement and line and sewer separation in the mix. It quickly evaporates,” Councilwoman Tish Powell said.
“I’m just trying to find a healthy mix of capital projects, perhaps blended with some other things that will give us the opportunity to enhance our community and address some of the gaps we’ve had here for a long time,” she said.
The council was favorable to the staff’s recommended proposals but discussions will continue. One factor that could alter how they spend the money is President Biden’s infrastructure bill, which includes funding for lead service line replacements.
Elgin has already received $9.75 million in federal recovering money and the next installment of $9.75 million will be sent next year, Kozal said. An initial report outlining how the funds are being spent is due Aug. 21, and similar reports will need to be sent annually through Dec. 31, 2026, which is the deadline for the money to be used, he said.
Only four categories of spending are allowed under the federal program: public health initiatives, revenue loss, water and sewer infrastructure investments and broadband, Kozal said. It cannot be used for pension fund donations, lawsuit settlements or to bolster budget reserves, he said.
Under the revenue loss category, the city could repay itself for an emergency loan it provided to the Food for Greater Elgin last year or for the $400,000 allocated for utility assistance. Staff is not recommending either of those, Kozal said.
Gloria Casas is a freelance reporter for The Courier-News.