SPRINGFIELD – Prophetstown’s extensive well and water treatment project will benefit from low-interest loans and loan forgiveness, according to an announcement Wednesday by the Illinois Environmental Protection Agency.
The loan from the state-revolving program is for $6.265 million. For fiscal 2023, the loan will have a 1.24% interest rate. The small community loan forgiveness amounts to $1.25 million.
The Prophetstown City Council voted Nov. 15, 2022, to accept a bid of $6.3 million from Leander Construction for the water treatment plant project, meeting minutes showed.
The Prophetstown project was one of 11 statewide that qualified for the program designed to fund wastewater, stormwater and drinking water projects.
In total, the state issued almost $75.9 million in infrastructure loans between October and December. The loan forgiveness was slightly more than $13.1 million.
According to the state EPA, Prophetstown’s project includes the drilling for and development of a 500 gallon-per-minute well.
Prophetstown also is getting a new water treatment plant with a gravity filtration system. That includes piping, a generator and the installation of a water main.
The city’s No. 4 well will get a new pump, and the No. 3 well will be abandoned. The city will demolish the existing gravity filter and backwash tank after the new facility is operational.
“These projects represent our ongoing commitment to provide the essential funding needed for infrastructure improvements that are crucial for safe and reliable drinking water and wastewater treatment for Illinois residents,” Illinois EPA Director John J. Kim said.
The state’s loan programs receive federal capitalization funding annually, which is combined with state matching funds, interest earnings, repayment money and the sale of bonds to form the source of financing for these infrastructure projects.
Matching funds are provided through the Rebuild Illinois Capital Plan.