The village of Montgomery will receive a $2 million federal grant issued by Kendall County to help pay for the replacement of water mains in the unincorporated Boulder Hill subdivision.

Village Board members voted 5-0 during a Feb. 27 meeting to approve an agreement with the county for the American Rescue Plan Act funds.

The Kendall County Board voted Feb. 7 to award the grant to the village.

Village Administrator Jeff Zoephel told the board the agreement sets the terms and conditions for the village to accept the funds from the county.

Village President Matt Brolley said he recently spoke with Kendall County Board Chairman Matt Kellogg and expressed his support and gratitude for being able to utilize federal funds that directly affect Kendal County residents and Montgomery water customers.

When questioned by board member Theresa Sperling, Zoephel said the village will use the funds to replace a water main section in the subdivision.

“We will scale a project for $2 million in Boulder Hill,” Zoephel said.

Brolley, however, acknowledged the grant will not come close to covering the estimated $75 million cost the village is facing to replace defective water mains in Boulder Hill and the rest of the village.

Village officials are seeking to replace leaky water mains throughout Boulder Hill and the village as part of an effort to tap Lake Michigan as its water source by the end of the decade. Before the village can obtain the lake water through the DuPage Water Commission, it must reduce its water-loss rate to less than 10% as required by the Illinois Department of Natural Resource.

The resolution adopted by the Village Board notes that the federal funds were allocated to Kendall County as COVID-19 recovery funds and may be used by local entities to invest in water and other public infrastructure projects.

Though located outside of Montgomery’s municipal limits, the village has been providing water service to Boulder Hill since 1958 under terms of an agreement with the late Don L. Dise, subdivision developer.

During the County Board’s Feb. 7 meeting, Scott Gengler, chairman of the board’s finance committee, noted that Boulder Hill, with a population of approximately 8,200 residents, is home to about one-third of all residents living in unincorporated areas of the county.