R-01-26 authorizing the Village Administrator to execute the loanR-i_G_�(
418 Main Street I Lemont, IL 60439
TO: Village Board Meeting
FROM: Darshana Prakash, Finance
THROUGH: George Schafer, Village Administrator
SUBJECT: A Resolution authorizing the Village Administrator to execute the loan
agreement #2 between the Village of Lemont and the Illinois Environmental
Protection Agency (IEPA)
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 late 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.
The Board has approved an Ordinance to enter into a loan agreement #2 between the Village
and the IEPA for the above mentioned project.
In order to facilitate entering into the loan agreement, the Board authorizes the Village
Administrator to act on their behalf to execute any documents associated with this loan
agreement.
ANALYSIS
Consistency with Village Policy
STAFF RECOMMENDATION
Pass the Resolution.
BOARD ACTION REQUESTED
Pass the Resolution.
ATTACHMENTS
Resolution to authorize VA for IEPA loan #2.pdf
Resolution No. R-1-aio
A Resolution Authorizing the Village Administrator to Execute the
Loan Agreement #2 between the Village of Lemont and the Illinois
Environmental Protection Agency (IEPA)
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 the 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, 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 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.
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, The Corporate Authorities hereby authorize and direct the Village
Administrator for the sole purpose of authorizing or executing any documents associated with
payment requests or reimbursements from the IEPA in connection with the Loan.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, DUPAGE, AND
WILL COUNTIES, ILLINOIS AS FOLLOWS:
SECTION ONE: The Village Administrator, in his discretion, is authorized
to execute the loan agreement with the IEPA.
SECTION TWO: This Resolution shall be in full force and effect from and after
its passage and approval as provided by law.
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ADOPTED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE
OF LEMONT, COUNTIES OF COOK, WILL AND DUPAGE, ILLINOIS on this 26'
DAY OF January 2026.
PRESIDENT AND VILLAGE BOARD MEMBERS:
Samuel Forzley
Janelle Kittridge
Ken McClafferty
Kevin Shaughnessy
Rick Sniegowski
Ron Stapleton
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AYES NAYS
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ABSENT ABSTAIN
JOHN EGOFSKE, Village President
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