2026-42 Ordinance Authorizing the City of Decatur, Illinois to Borrow Funds from the Water Pollution Control Loan Program through the Illinois Environmental Protection Agency for the Broadway and Jasper Sewer Rehabilitation Project, City

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The IEPA Wastewater and Drinking Water loan programs provide low-interest loans through the State Revolving Fund (SRF). The SRF includes two loan programs: the Water Pollution Control Loan Program (WPCLP)which funds both wastewater and storm water projects, and the Public Water Supply Loan Program (PWSLP) for drinking water projects. The current year loan interest rate is 2.44%. Project Funding through the Water Pollution Control Loan Program The passage of an ordinance authorizing a loan agreement to borrow funds from the Water Pollution Control Loan Program is one of the final steps in securing an IEPA low interest loan. The ordinance addresses the funding for the project and assures that the City is able to repay the loan over a 20-year time period beginning at the substantial completion of the project. The funds included in the loan request are summarized in the following table: Work Item Project Estimate Design Engineering $379,700 Construction $17,200,000 Construction Contingency(10%) $1,720,000 Construction Engineering $1,320,000 Total Estimated Project Cost $20,619,700 Construction Period Interest (1.5%) $309,296 Sub-Total $20,928,996 Total Loan Requested $21,000,000 The project was identified in the IEPA's FY 2027 Intended Use Plan published on July 1, 2026, for a budget of $20,640,000 with principal forgiveness up to $6,192,000. As is common with the loan program, the actual loan document will not be fully written until a construction contract has been awarded by the City Council and approved by the IEPA. At that point, the loan agreement authorized by the ordinance will be signed by the City Manager and the loan activated. The contractor will then be given notice to proceed. Construction Engineering Services The IEPA requires that projects being supported by the Water Pollution Control Loan Program be provided with project oversight by qualified resident engineers that are familiar with the water treatment work being proposed. A construction engineering agreement will be brought to the Mayor and Council at the same time that a construction contract is to be awarded. LEGAL REVIEW: The Loan Ordinance was reviewed on October 9, 2026. PRIOR COUNCIL ACTION: See Appendix A for a listing of prior Council actions. SANITARY SEWER PRIORITIES: Under the direction of the City Council, the Public Works Department has established four priorities to improve the City's sanitary sewer collection system as defined in the Sanitary Sewer Master Plan.