Streator council to host special meeting to review details on funding oxidation project

Streator’s City Council decided to table the decision on funding the oxidation ditch project at the wastewater treatment plant during Wednesday’s meeting.

Originally estimated to be about a $2 million project, the lowest bid for the project came in at $3,149,815. Despite securing a federal grant of $1.2 million earmarked for the project, Streator faces a funding gap of about $1.45 million to cover the increase in equipment and labor expenses that drove up the cost of the project.

The deadline to accept the bid is Aug. 9.

The council’s decision to postpone the funding resolution comes from its realization it can cover the equipment costs using proceeds from the federal grant and can act quickly on that aspect of the project before facing potential further cost increases.

As for the rest of the funding, the city has two options it has been considering for more than a month: utilizing $500,000 from the sewer depreciation fund annually over 2024 and 2025, or pursuing a low-interest loan through the Illinois Environmental Protection Agency.

The latter option would allow the city to spread the financial burden over time and potentially benefit from loan forgiveness programs. City Manager David Plyman said during the meeting that while loan forgiveness is not guaranteed, Streator is likely to qualify if it proceeds with this option.

Regardless, this approach would extend the project timeline to 2026 and require approval from both the IEPA and U.S. EPA to align with grant conditions.

For the next step, Plyman said Streator plans to schedule a special meeting within the next two weeks to review the proposal from the equipment manufacturer and finalize the cost of the equipment, ensuring that all details are clarified ahead of the next City Council meeting on Aug. 7.