Homewood trustees agreed to take a loan from the Public Water Supply Loan Program (PWSLP) for $4.1 million for the lead service line replacement project in 2026. 

PWSLP, a state-funded program, provides low-interest loans to communities to help improve their drinking water infrastructure, according to Amy Zukowski, Homewood’s director of finance, who shared information with the board. Trustees approved the loan application at the June 10 meeting.

Lead service line replacement is federally mandated. It requires all municipalities to replace the lead lines connecting homes to the village’s delivery line.

The U.S. Environmental Protection Agency is giving communities 10 years to complete the lead line replacement. Previously, the rule allowed 17 years for replacement time, but that will change in 2027, Zukowski said in a memo. 

The total cost for all lead service lines to be replaced within the village is approximately $70 million. It costs about $8,000 to $10,000 for one service line replacement per property, Zukowski wrote. 

The costs of water delivery and the water system’s improvements are paid through water bills. The village will be raising its water rate, in part, to cover the mandated lead line replacement work.

Burns and McDonnell Engineering started conducting a water rate study for the village earlier this year. Dave Naumann, senior project manager for financial analysis and rate design with the engineering firm, said that there are opportunities for principal forgiveness and long-term loans when explaining the process to the board in April.  

“The village was ecstatic to receive news on last week that we are slated to receive $2 million in principal forgiveness (no repayment) and $2,137,498 in loan funding with 0% interest,” Zukowski said in her memo.

The village will now submit the PWSLP application. Final approval of the loan should be granted in late fall, she said.