Infrastructure Improvements Using Community Development Block Grants

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Infrastructure Improvements Using Community
Development Block Grants

• Slow and Steady Wins the Race

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Presented by

• Willie Kootstra
• Village of Island Lake, DPW
• Kevin Sutherland, P.E.
• Baxter Woodman, Inc.

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Presentation Goals

• Provide Island Lake Case Study
• Small Community/Limited Funding
• Provide CDBG Basics

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Island Lake - Village Vitals

• Border Community Lake/McHenry County (NE
  Illinois)
• 40 miles NW of Chicago

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Village Vitals continued

• Cottage Vacation Community
• Incorporated in 1950
• Population 8,153 (2000 Census)
• 2030 Population 13,577 (Northeastern Illinois
  Planning Commission projection)

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Village Vitals continued

• Lots of Residential
• Commercial Not so much
• Industrial A smidge
• Total Water Main Length 243,000 feet

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Island Lake Water Company
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Island LakeWater Company

• Served original portion of town
• 11.6 miles of cast iron pipe
• 10 miles of 2-, 2.5-, 3- and 4-inch
• Purchased by Village in 1995 via bond issue
• In need of work

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Available Funding Sources

• Water operating fund
• General funds
• Connection fee
• CDBG funding
• IEPA Low Interest Loan

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Available Funding Sources

• Member initiative
• Developer participation
• Special Service Area
• Tax Increment Finance District

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So Why Rely on CDBG?

• Water Operating Fund no rate increase
• General Funds no new taxes
• Connection Fees no rate increase
• CDBG Funding consistent, low matching
  percentage
• IEPA Low Interest Loan no new taxes

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So Why Rely on CDBG?

• Member Initiative not reliable (but good when
  available)
• Developer Participation not reliable (but good
  when available)
• Special Service Area no new taxes
• Tax Increment Finance District not a blighted
  area

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About CBDG

• Community Development Block Grant (CDBG)
• One of last links to Revenue Sharing
• Available
• Directly to Entitlement Communities (50,000 or
  more) from Department of Housing and Urban
  Development (HUD)
• Through Urban Counties (200,000 not including
  entitlement communities) to member communities
• To Non-entitlement Communities Through DCEO
  (small cities CDBG program)

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About CDBG

• Eligible Activities
• Acquisition of property for public use
• Construction/reconstruction of public
  infrastructure
• Demolition
• Rehabilitation of buildings
• Public services
• Planning activities
• Assistance to entities to carry out economic
  development activities
• 2006 CDBG Funding in Illinois
• Entitlement Communities/Urban Counties 145M
• State of Illinois 32M

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CDBG Information

• Entitlement Communities in Illinois
• www.hud.gov/local/il/working/cities.cfm
• Has links to community web sites
• Department of Commerce and Economic Development
• www.illinoisbiz.biz/dceo/Bureaus/Community_Develop
  ment/Grants/CDAP.htm
• 2006 CDBG Allocations in Illinois
• www.hud.gov/offices/cpd/about/budget/budget06/stat
  es/il.xls

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Progress Thus Far

• Replaced 34,859 feet
• 28,012 feet through CDBG
• 2,115 feet to be completed in Spring 07
• 28,813 feet remaining
• CDBG Funding - 1,117,000
• Total Cost - 2,938,000

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Next Step

• CDBG Funding eligibility running out for Island
  Lake
• Need to take another look at other funding
  options
• Still 45 of system to replace
• What about other infrastructure needs? Roads?
  Storm?

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Lessons Learned

• Dont overlook small stuff
• Dont rely on the small stuff
• Get someone who knows how to write a grant

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Thank You!

• Questions?...
• Contact Kevin Sutherland at ksutherland_at_baxterwood
  man.com.