Lake Zurich board authorizes revenue bonds to fund Lake Michigan water transition

The Lake Zurich Village Board approved two ordinances authorizing the issuance of waterworks and sewerage revenue bonds to fund the village's transition from local groundwater to Lake Michigan water through the Central Lake County Joint Action Water Agency (CLC JAWA).

The first ordinance authorizes bonds in an aggregate principal amount not to exceed $42,000,000 to fund a reservoir and pump station; the second authorizes up to $10,000,000 for internal water distribution improvements. Staff and trustees said the loans would be part of IEPA financing and that the resulting debt service was incorporated into water rates approved in December 2023.

Rita (staff) told the board the two loans will allow the village to build the receiving station and pump station and to complete internal improvements; Public Works Director Mike Brown added that design was about 60% complete for the receiving station within the village and for the booster station in Mundelein. Brown said the village is refining route studies and easement acquisition; bids for station work are anticipated in mid–late 2026 with construction expected to begin near the end of that year and continue into 2027.

Trustees moved and approved both ordinances by roll call. The board said the debt will be funded from the water and sewer fund and that associated rate impacts were included in prior planning. The village packet references prior agreements with CLC JAWA and an overall transition plan developed in 2023.

Next steps include continuing design, finalizing IEPA loan applications, easement negotiations and preparing bid documents for the planned construction schedule.