The village of Lake in the Hills will hold a public hearing next month regarding the formation of a special service area to help improve water distribution facilities for some residents, according to a public notice.
The hearing will be at 7:30 p.m. June 11 at Village Hall, 600 Harvest Gate. Attendees will learn about the possible village of Lake in the Hills Special Service Area Number 51, which includes an unincorporated area of the village south of Algonquin and Pyott roads.
The project includes construction and installation of potable water distribution facilities and related improvements.
To finance the improvements, the village plans to issue up to $2 million in special tax bonds. The funds would be repaid, at most, over 30 years by affected residents. The maximum amount of special service area taxes in any year would be $185,000. For each taxable parcel, the special service area tax would be a flat rate not to exceed $2,891 on an annual basis, according to the public notice.
The estimated 70-year-old water main system serves 67 customers, 64 of whom live in the unincorporated portion of the village, and has reached the end of its useful life.
“The system is 70 years old, antiquated and failing,” Public Works Director Dan Kaup said.
In November, McHenry County consented to the village’s establishment of the unincorporated area as an SSA – a financing mechanism where a village can issue bonds that would be payable from property taxes levied from homeowners in the designated area.
Since then, the village has mapped out a plan to begin construction of the water main by February 2020, Kaup said.
Last year, village staff said the pipes were so fragile that basic flushing maintenance could not be performed without causing water main breaks. Kaup said on average, the neighborhood experiences about five water main breaks a year.
An engineer’s estimate compiled by H.R. Green in 2018 put the cost of a water main replacement at about
In April, the Village Board approved the SSA. However, if a petition signed by at least 51% of affected residents opposed to the project is filed with the village clerk by June 11, the SSA will not be created, Kaup said.
The village expects to award construction and adopt a bond ordinance for the project by Oct. 22. After a 30-day review period, the bonds will be issued, assuming action is approved by the board.