Glen Carbon Weighs Bond Authority After State Denies $27M Loan for New Water Treatment Plant

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Blueprints, bond paperwork and a ballot box representing a village decision on a water treatment plant

Glen Carbon, August 18, 2025

News Summary

Glen Carbon officials are preparing to issue bonds to fund a proposed new water treatment plant after a $27 million state loan application was denied. The Finance Committee approved an ordinance to allow the village to seek private financing authority while preserving a 30-day “back door” referendum that lets residents gather signatures to put the bond question on the ballot. The full village board will consider the ordinance next, and if adopted the village would solicit construction bids and compare costs against continuing to buy water from outside providers.

Glen Carbon weighs bond financing and a citizen referendum after state denies $27 million loan

Village officials in Glen Carbon are moving toward using bonds to pay for a proposed new water treatment plant after the state declined a requested $27 million loan. The finance committee approved an ordinance that would enable a back door referendum, a petition-driven process that allows residents to force a public vote on the bond plan if enough signatures are gathered within 30 days.

Key decision points and next steps

The Illinois Environmental Protection Agency rejected Glen Carbon’s application because the village did not score high enough in a competitive funding round. Village officials say the state program is prioritizing communities with the most urgent needs, and the agency did not immediately provide comment to village requests. In response, village staff are preparing to seek authority to issue bonds for private financing while continuing to pursue any available state help.

The two-step approach starts with the board asking voters to authorize borrowing. If the full village board approves the ordinance when it meets later this month, residents will have 30 days to collect signatures to place the bond question on the ballot for March 17, 2026. If no petition is filed in that window, the village would be free to move forward with bond sales. If a petition reaches the threshold, voters will decide whether the village may borrow the money.

What the ordinance does — and what it doesn’t

The measure approved by the finance committee only grants the board the power to issue bonds. It does not obligate the village to build a new plant. Committee members emphasized that granting bonding authority would not delay the project or change the schedule for getting construction bids. Officials plan to get bids once authorization is in place and then compare the cost of building to the cost of continuing to purchase water from outside suppliers.

Local leaders and committee action

The village finance committee that cleared the ordinance is made up of three trustees. The committee’s approval sends the ordinance to the full board for final consideration. Village administrators are framing bond authority as a way to maintain options: if bids show the project is too expensive, the village can continue to buy water instead of building.

Background: why Glen Carbon is making this choice now

Glen Carbon closed its own water treatment plant in the 1990s and has since relied on other providers for drinking water. The village initially bought water from a neighboring community and now relies on a private regional supplier. That supplier has proposed a new permanent contract if the village decides not to move forward with its own plant, which makes the comparison between buying water and building a plant immediate and practical.

Local officials say the choice comes down to long-term cost and control. If a new plant can be built and operated for less than or comparable to ongoing purchase costs, the village could regain local control of treatment. If bids come back much higher, the village could elect to stay with outside providers and accept a long-term purchase contract.

Timing and public input

The full board is expected to consider the ordinance at its upcoming meeting. If the board approves it, the 30-day petition clock begins. A successful petition would put the bond question on the March 17, 2026 ballot. Officials emphasize that petitioning for a public vote would not change the village’s schedule for getting bids for construction; bids would still be sought on the original timeline so the village and voters can see real cost numbers before making final choices.

Financial and planning context

Officials describe state funding programs as highly competitive and geared to the most critical public health needs. With state dollars unlikely for now, the village is preparing to secure private financing authority as a backup. Bond financing would allow the village to lock in funding if bids are favorable and move quickly if the community chooses to build.

What residents should watch for

  • Full village board action on the ordinance at the upcoming meeting.
  • Start of the 30-day petition window, if the board approves the ordinance.
  • Release and evaluation of construction bids, which officials say will proceed on the original timetable.
  • Possible placement of the bond question on the March 17, 2026 ballot if a valid petition is filed.

Related local construction activity

Nearby school and municipal projects are also moving forward this year. A local school district has planned an unusually large summer construction program, including secure entry upgrades, roof replacements, solar panel installations and building additions funded by recent bonds and district budgets. These projects show the type of local work that can affect demand for construction services and influence bid pricing in the region.


Frequently Asked Questions

What happened with the Illinois EPA loan request?

The state denied the village’s request for a $27 million loan because the application did not score high enough in a competitive process. State officials prioritized projects with the most urgent need.

What is a back door referendum?

A back door referendum is a petition-based method that lets residents force a public vote on a bond or ordinance. If enough voters sign within the allowed petition period, the issue goes to a public ballot.

If the board approves the ordinance, what happens next?

Residents would have 30 days to submit a petition to put the bond question on the March 17, 2026 ballot. If no petition is filed, the village can proceed with bond financing. If a petition qualifies, voters will decide.

Does authorizing bonds mean the village will definitely build the plant?

No. Authorizing the ability to issue bonds does not obligate the village to build. It only allows the board to borrow if it chooses to do so later.

Will authorizing bonds delay bids or the project timeline?

Village officials say the petition and potential referendum would not change the timetable for requesting construction bids. Bids will be gathered under the planned schedule so cost estimates are available for decision-making.

How will this affect water service for residents?

For now, current water service from outside providers continues. If construction proceeds and a new plant opens, the village would regain local treatment capability. If construction is deemed too costly, the village may accept a long-term contract with the current supplier.

Key features at a glance

Item Details
Denied state loan $27,000,000 request denied by Illinois EPA due to scoring in a competitive process
Primary backup plan Seek authority to issue bonds for private financing while pursuing state aid
Citizen action option Back door referendum via petition within 30 days after board approval
Potential ballot date March 17, 2026 — if a valid petition is filed
Committee Village finance committee of three trustees approved the ordinance
Does authorization equal construction? No — authorization only allows borrowing; construction requires later action
Current water supply Village has relied on outside suppliers since the local plant closed in the 1990s
Next official step Full village board to consider the ordinance at the upcoming meeting

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Construction CA News
Author: Construction CA News

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