Without action by the General Assembly early next year, Beecher residents face having to pay several hundred thousand dollars more on a loan the village needs to complete funding of a $3 million expansion to its aging sewage treatment plant.
Beecher is one of about 20 projects in the state eligible for low-interest loans as part of a federal matching program that would help upgrade sewage plants across the state.
The loans are 80 percent federally funded, provided there is a 20 percent state match. The loan funds that were expected to be available this year total $66 million–with $55 million coming from the federal government and the rest from the state.
But failure of the General Asssembly, both last summer and last week, to fund its $11 million share of the program has left several projects in the lurch. In addition to Beecher, other communities in the region with projects on the Illinois Environmental Protection Agency’s priority list include Franklin Park, Chicago Heights, Fox Lake and the Metropolitan Water Reclamation District.
“We plan on going ahead with the project,” said Beecher village administrator Robert Barber. “However, if we don’t get the funding from the IEPA even in the spring, it may cost the village about $10,000 to $20,000 more per year in interest . . . over 20 years.”
Among other things, Beecher must award a construction contract by Feb. 1 or it would face having to rebid the project.
“I could anticipate a 20 percent to 30 percent increase in those bids the next time around. . .,” said Barber.
State Sen. Thomas Dunn (D-Joliet), who failed to jar the loan legislation loose, said another attempt will be made to secure the matching funds in January.
For Beecher, not getting more low-interest state money means the village is between $600,000 and $700,000 short of the cash it needs for the project–and that it would have to get that money at higher interest rates from a commercial lender.
The state already has committed to lending Beecher roughly $2.4 million of the $3 million needed to double the treatment capacity of the 33-year-old plant to 6 million gallons a day.
As a contingency plan, to keep from re-bidding the project, the village is considering authorizing alternate bonding authority that would cover that gap. Voters could challenge that authorization via referendum, Barber said.
“I would consider that us not being able to award this construction contract would be a significant setback,” said Barber. “I anticipate the board, in its December meeting, to authorize alternate bonding. That’s their only option right now.”
The construction project, which is a must for Beecher, is the largest in the history of the 125-year-old village.
Beecher has been on a restricted status with the IEPA and must get state approval for any future sewer extensions.
The proposed expansion is geared to meet the village’s current and projected growth needs without accounting for a possible regional airport at its western border.
Had the village not committed to planning for the new plant, the IEPA was prepared in 1993 to require that Beecher cease approving any new subdivisions.
After Beecher voters opted earlier this month not to increase property taxes next year to fund the shortfall, the Village Board went ahead with plans to double the existing municipal utility tax to 5 percent from 2.5 percent to raise the funds.
A $1 sewer rate increase, to $2.50 per 1,000 gallons of water from $1.50, already is in place to help repay the loan.
