Mt. Vernon approves loan application

December 31, 2018

By Tesa Glass-

MT. VERNON — The Mt. Vernon City Council approved an application for a loan to renovate the water storage tank on Opdyke Avenue.
The loan, from the Illinois Environmental Protection Agency, would be used to renovate the 500,000 elevated water tank, using the plans and specifications provided to the city by engineers. According to the ordinance, the renovations, when completed, would give the tank a useful life of about 50 years.

The estimated cost of the project is $973,689.50, and the loan request to the IEPA Public Water Supply Loan Program is for $903,190, payable in semi-annually over 20 years.

Under terms of the ordinance which approved the loan application, the loan will be repaid using revenues received from the 2 percent increase in water rates approved in 2016 and the 1 percent increase in the Mt. Vernon Home Rule Municipal Retailers and Service Occupation Tax approved in 2017.

“Repayment of the loan to the Illinois Environmental Protection Agency by the City of Mt. Vernon pursuant to this ordinance is to be solely from the Dedicated Revenues, and the loan does not constitute an indebtedness of the City of Mt. Vernon within the meaning of any constitutional or statutory limitation,” the ordinance states.

The Opdyke Water Tower renovation was recommended by the city’s Utility Committee as the highest priority for 2019.