The Geneva City Council on Tuesday approved nearly $13 million in waterworks and sewerage revenue bonds to address improvements to its utility infrastructure.

The total, about $12.9 million, will be a low-interest Illinois Environmental Protection Agency loan with an interest rate of 2.16% and 30 years to pay it back, officials said.

“Specifically, the city plans to utilize the IEPA Water Pollution Control Loan Program,” City Administrator Alex Voigt said. “The ordinance before the City Council is the city’s IEPA loan application to support funding improvements to the sanitary sewer system.”

The project includes construction of a new sanitary sewer river crossing.

About 80% of the city’s sewage passes through a single 20-inch pipe under the Fox River, according to a study presented in 2021. The single 20-inch pipe connects the area west of the river to the treatment plant, according to a study of the city’s sewer and water system.

Building another connection will reduce the risk of sanitary sewer overflows, allows for redundancy within the system, routine maintenance, a new screening building to replace obsolete facilities and safer access for employees, documents show.

Finance Director Jennifer Milewski said the current loan under consideration is called a junior lien.

“What that means is the net revenues generated from the operation of the enterprise itself is what is used to cover that payment,” Milewski said. “It will cover first operation and maintenance, then will cover senior liens and then junior liens.”

The IEPA extended its loan length to 30 years from 20, giving the city a longer amortization period, Milewski said.

The loan is about $7 million less than a proposed $20 million maximum the city council considered in 2024 for the same project.

Officials did not issue the debt then, but a maximum for the project had to be set so the city could proceed with the IEPA loan process, officials stated in an email.

The city also sought a $15 million IEPA loan for water main and lead water service line replacements, but that application was denied, officials stated in an email.

In 2023, officials increased the water rate, not only to maintain the system, but to qualify for an IEPA loan, as the river crossing alone will cost at least $12 million, according to a water and sewer rate study.

“This is actually very good news,” Mayor Kevin Burns said. “For the record, these are highly competitive bonds so we have been delighted to receive these over the years. Great work to the team.”