O-02-26 authorizing the Village of Lemont, Cook, DuPage and Will counties, Illinois to borrow funds from the Public Water Supply Loan Program of the Illinois Environmental Protection Agency (Loan #2)418 Main Street I Lemont, IL 60439
TO: Village Board Meeting
FROM: Darshana Prakash, Finance
THROUGH: George Schafer, Village Administrator
SUBJECT: An Ordinance authorizing the Village of Lemont, Cook, DuPage and Will
counties, Illinois to borrow funds from the Public Water Supply Loan
Program of the Illinois Environmental Protection Agency (Loan #2)
DATE: January 26, 2026
SUMMARY/BACKGROUND
The Village submitted its inventory of lead service lines to the Illinois Environmental Protection
Agency (IEPA) in April 2024. Replacement of lead service lines is being conducted based on
resident responses confirming the presence of lead lines. In 2024, the Board approved
Ordinance 0-39-24 authorizing the first IEPA loan for the replacement of 35 lead service lines,
scheduled for completion by February 2026.
This Ordinance authorizes a second IEPA loan to fund the replacement of an additional 26
lead service lines in FY26/early FY27, at an estimated total cost of $500,000.
Due to the multi -year and costly nature of this mandated program, the IEPA provides funding
through its Public Water Supply Loan Program. The proposed loan carries a 0% interest rate
with a 30-year repayment term. The estimated budgetary impact is $17,000 in the first year, to
be paid from the Water Fund, with repayment from water revenues and, if necessary, sales tax
revenues as a loan from the General Fund.
Staff recommends that the Board a pprove the loan agreement between the Village and the
IEPA.
ANALYSIS
Consistency with Village Policy
STAFF RECOMMENDATION
Approve attached Ordinance.
BOARD ACTION REQUESTED
Approve attached Ordinance.
ATTACHMENTS
LOAN AGREEMENT AUTHORIZING ORDINANCE IEPA Loan #2.pdf
ORDINANCE NUMBER D
AN ORDINANCE authorizing the Village of Lemont, Cook,
DuPage and Will Counties, Illinois to borrow funds from the Public
Water Supply Loan Program of the Illinois Environmental
Protection Agency (Loan #2).
WHEREAS, the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the
"Village") operates its combined waterworks and sewerage system (the "System") in accordance
with the provisions of the Illinois Municipal Code (65 ILCS 5/11-139) and the Local Government
Debt Reform Act of the State of Illinois (the "State"), 30 ILCS 350/1 (collectively, the "Act"), and
WHEREAS, the President and Board of Trustees of the Village (the "Corporate
Authorities") have determined that it is advisable, necessary and in the best interests of public
health, safety and welfare of the Village and its residents to make improvements to the System,
including, but not limited to, replacement of 26 residential lead water service lines and any and all
other System -related projects and improvements in connection thereto, together with any land or
rights in land and all electrical, mechanical or other services necessary, useful or advisable to the
construction and installation (collectively, the "Project"), all in accordance with the plans and
specifications prepared by consulting engineers of the Village, which Project has a useful life of
50 years; and
WHEREAS, the estimated cost of construction and installation of the Project, including
engineering, legal, financial, and other related expenses is $500,000, and there are insufficient
funds on hand and lawfully available to pay these costs; and
WHEREAS, the loan shall bear an interest rate as defined by 35 I11. Adm. Code 662, which
does not exceed the maximum rate authorized by the Bond Authorization Act, as amended,
30 ILCS 305/0.01 et seq., at the time of the issuance of the loan; and
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WHEREAS, the principal and interest payment shall be payable semi-annually, and
the loan shall mature in 30 years, which is within the period of useful life of the Project; and
WHEREAS, the costs are expected to be paid for with a loan to the Village from the Public
Water Supply Loan Program (the "Loan") through the Illinois Environmental Protection Agency
(the "IEPA"), the Loan to be repaid from the (i) Net Revenues (i.e., gross revenues minus
operations and maintenance expenses) of the System and (ii) taxes imposed by the State and
distributed to the Village pursuant to the Illinois Use, Service Use, Service Occupation, and
Retailers Occupation Tax Acts (collectively, the "Pledged Revenues"), and the Loan is authorized
to be accepted at this time pursuant to the Act; and
WHEREAS, the Loan to the Village shall be made pursuant to a Loan Agreement,
including certain terms and conditions, between the Village and the IEPA; and
WHEREAS, in accordance with the provisions of the Act, the Village is authorized to
borrow funds from the Public Water Supply Loan Program of an aggregate principal amount of
not to exceed $500,000 to provide funds to pay for a portion of the costs of the Project;
NOW THEREFORE, Be It Ordained by the President and Board of Trustees of the Village
of Lemont, Cook, DuPage and Will Counties, Illinois, as follows:
SECTION 1. INCORPORATION OF PREAMBLES
The Corporate Authorities hereby find that the recitals contained in the preambles are true
and correct and incorporate them into this Ordinance by this reference.
SECTION 2. DETERMINATION TO BORROW FUNDS
It is necessary and in the best interests of the Village to construct the Project for the public
health, safety and welfare, in accordance with the plans and specifications, as described; that the
System continues to be operated in accordance with the provisions of the Act; and that for the
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purpose of constructing the Project, it is hereby authorized that funds be borrowed by the Village
in an aggregate principal amount (which can include construction period interest financed over the
term of the Loan) in one or more draws not to exceed $500,000.
SECTION 3. SECTION 3. PUBLICATION
This Ordinance, together with a Notice in the statutory form (attached hereto as
Exhibit A), shall be published once within ten (10) days after passage in My Suburban Life or
the Daily Southtown, each a newspaper published and of general circulation in the Village, and
if no petition, signed by electors numbering 10% or more of the registered voters in the Village
(i.e., 1,459 or more) asking that the question of improving the System as provided in this
Ordinance and entering into the Loan Agreement therefore be submitted to the electors of the
Village, is filed with the Village Clerk within 30 days after the date of publication of this
Ordinance and notice, then this Ordinance shall be in full force and effect. A petition form
shall be provided by the Village Clerk to any individual requesting one.
SECTION 4. ADDITIONAL ORDINANCES
If no petition meeting the requirements of the Act and other applicable laws is filed during
the 30-day petition period, then the Corporate Authorities may adopt additional ordinances or
proceedings supplementing or amending this Ordinance providing for entering into the Loan
Agreement with the IEPA, prescribing all the details of the Loan Agreement, and providing for
the collection, segregation, and distribution of the Pledged Revenues, so long as the maximum
amount of the Loan Agreement as set forth in this Ordinance is not exceeded and there is no
material change in the Project or purposes described herein. Any additional ordinances or
proceedings shall in all instances become effective in accordance with the Act or other applicable
45456069.2/ 163218.00002
law. This Ordinance, together with such additional ordinances or proceedings, shall constitute
complete authority for entering into the Loan Agreement under applicable law.
However, notwithstanding the above, the Village may not adopt additional ordinances or
amendments which provide for any substantive or material change in the scope and intent of this
Ordinance, including but not limited to interest rate, preference, or priority of any other ordinance
with this Ordinance, parity of any other ordinance with this Ordinance, or otherwise alter or impair
the obligation of the Village to pay the principal and interest due to the Public Water Supply Loan
Program without the written consent of the IEPA.
SECTION 5. LOAN NOT INDEBTEDNESS OF VILLAGE
Repayment of the Loan to the IEPA by the Village pursuant to this Ordinance is to be solely
from the Pledged Revenues, and the Loan does not constitute an indebtedness of the Village within
the meaning of any constitutional or statutory limitation.
SECTION 6. APPLICATION FOR LOAN
The President is hereby authorized to make application to the IEPA for a loan through the
Public Water Supply Loan Program, in accordance with the loan requirements set out in 35 111.
Adm. Code 662.
SECTION 7. ACCEPTANCE OF LOAN AGREEMENT
The Corporate Authorities hereby authorize acceptance of the offer of a loan through the
Public Water Supply Loan Program, including all terms and conditions of the Loan Agreement as
well as all special conditions contained therein and made a part thereof by reference. The
Corporate Authorities further agree that the loan funds awarded shall be used solely for the
purposes of the Project as approved by the IEPA in accordance with the terms and conditions of
the Loan Agreement.
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SECTION 8. OUTSTANDING BONDS
The Village has outstanding bonds that are payable from revenues of the System, but the
outstanding bonds are not senior to, but on parity with, the loan authorized by this Ordinance.
SECTION 9. AUTHORIZATION FOR PRESIDENT
TO EXECUTE LOAN AGREEMENT
The President is hereby authorized and directed to execute the Loan Agreement with the
IEPA. The Corporate Authorities may authorize by resolution a person other than the President
for the sole purpose of authorizing or executing any documents associated with payment requests
or reimbursements from the IEPA in connection with the Loan.
SECTION 10. SEVERABILITY
If any section, paragraph, clause or provision of this Ordinance is held invalid, the
invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions
of this Ordinance.
SECTION 11. REPEALER
All ordinances, resolutions or orders, or parts thereof, which conflict with the provisions
of this Ordinance are, to the extent of such conflict, hereby repealed.
THE REST OF THIS PAGE IS INTENTIONALLY LEFT BLANK
45456069.2/163218.00002
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL, AND DUPAGE, ILLINOIS,
ON THIS DAY OF � ,a(3. )OfGq 2026.
Samuel J. Forzley
Janelle Kittridge
Ken McClafferty
Kevin Shaughnessy
Rick Sniegowski
Ron Stapleton
ATTEST:
PRESIDENT AND VILLAGE BOARD MEMBERS:
AYES: NAYES
V
CHARL NE M. SMOLLEN
Village Clerk
ABSENT: ABSTAIN:
JOHN EGOFSKE
President
St 0 F 4�e
�Q
V
SEAL
l<< 1 N OAS
PASSED by the Corporate Authorities
on January 26, 2026.
Approved January 26, 2026.
Presiclent
Village of Lemont
Cook, DuPage and Will Counties, Illinois
AYES:
NAYS:
ABSENT:
RECORDED in the Village Records on January 26, 2026.
ATTEST:
Village Clerk
Village of Lemont
Cook, DuPage and Will Counties, Illinois
45456069.2/ 163218.00002
G� OF l e
v� 'o
SEAL
/�LINO\''
EXHIBIT A
NOTICE OF INTENT TO BORROW FUNDS AND
RIGHT TO FILE PETITION
NOTICE IS HEREBY GIVEN that, pursuant to Ordinance Number O-a-g adopted on
January 26, 2026, the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the
"Village"), intends to enter into a Loan Agreement with the Illinois Environmental Protection
Agency in an aggregate principal amount not to exceed $500,000 and bearing annual interest at an
amount not to exceed the maximum rate authorized by law at the time of execution of the Loan
Agreement, for the purpose of paying the cost of certain improvements to the public water supply
system of the Village. A complete copy of the Ordinance is attached hereto and appears below
this notice.
NOTICE IS HEREBY FURTHER GIVEN that if a petition signed by 1,459 or more
electors of the Village (being equal to 10% of the registered voters in the Village), requesting that
the question of improving the public water supply system and entering into the Loan Agreement is
submitted to the Village Clerk within 30 days after the publication of this Notice, the question of
improving the public water supply system of the Village as provided in the Ordinance and Loan
Agreement shall be submitted to the electors of the Village at the general election to be held on
the 3rd day of November, 2026. A petition form shall be provided by the Village Clerk at the
principal office of the Village, located at 418 Main Street, Lemont, Illinois.
/s/ Charlene Smollen Al u��ytecG�
Village Clerk, Village of Lemont, Cook, DuPage and
Will Counties, Illinois
s`tIN0\S
45456069.2/ 163218.00002
PETITION
To the Village Clerk of Village of Lemont, Cook, DuPage and Will Counties, Illinois (the "Village"):
We, the undersigned, being registered voters of the Village, do hereby petition you to cause the question of
the Village improving the public water supply system and entering into a loan agreement (the "Loan") for the purpose
of paying the cost of certain improvements to the public water supply system of the Village, with said Loan to be
repaid from the (i) Net Revenues (i.e., gross revenues minus operations and maintenance expenses) of the System and
(ii) taxes imposed by the State of Illinois and distributed to the Village pursuant to the Illinois Use, Service Use,
Service Occupation, and Retailers Occupation Tax Acts to be certified to the County Clerks of Cook, DuPage and
Will Counties, Illinois, and submitted to the respective electors of said County at the next election to be held at which
said question may be voted upon.
Name
Address
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
Lemont,
, Lemont,
Court
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
County, Illinois
I, of (insert residence address),
Illinois, do hereby certify that I am a citizen of the United States and at least 18 years of age or older, and in the County
of , Illinois, and that the signatures on this petition were signed in my presence, and are genuine, and, to the
best of my knowledge and belief, the persons so signing were at the time of signing this petition registered voters of
said Village and that their respective addresses are correctly stated herein.
Subscribed and sworn to before me this day of , 2026.
Illinois Notary Public
My Commission Expires:
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