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

Village leaders in Glen Carbon are moving quickly to secure alternative funding for a proposed new water treatment plant after the state declined a request for a $27 million loan. Officials are considering issuing bonds and have approved a measure that would let residents force a public vote through a back door referendum if they object to borrowing.

Loan denial pushes village toward bonding option

The Illinois Environmental Protection Agency did not approve Glen Carbon’s application for the requested loan because the village did not score high enough in the competitive funding process. Village officials say that state funds are being targeted toward applicants with the most urgent needs.

While officials will continue to seek state assistance, the village is preparing for the possibility of paying for the project with private money backed by municipal bonds. Village staff are seeking authorization from the board that would allow them to pursue bond financing if needed.

Back door referendum authorization and next steps

A three-member Finance Committee—made up of the trustees who oversee the village’s finances—approved an ordinance enabling what the village describes as a back door referendum. If the full board approves the ordinance at its next meeting, residents will have a 30-day window to gather signatures to place the bond question on the ballot for the March 17, 2026 election.

If no petition is filed during that 30-day period, the village could move ahead with bond sales to secure funding. If residents do collect enough signatures, voters would decide whether the village can borrow the money. Committee members stressed that authorizing bond capacity would not by itself commit the village to build the plant; it would simply create a financing option and allow the village to solicit construction bids without delay.

Timing, bids and alternatives

Officials plan to obtain bidding information once they have clear bonding authority. If bids show the cost is prohibitively high, the village could choose to continue buying water from outside providers rather than move forward with construction. Glen Carbon stopped operating its own water treatment plant in the 1990s and currently purchases treated water from Illinois American Water. The outside provider has proposed a new permanent contract if the village decides not to build its own plant.

Village leaders say the decision will rest on what is most economical for residents over time. They note that construction and operating costs will be weighed against the long-term price and reliability of purchased water service.

Officials and process

The Village Administrator has explained that the state funding process has become more competitive and that available funds are being prioritized for projects with the most critical needs. The Illinois EPA did not immediately respond to a request for comment on the denial.

The Finance Committee members who acted on the ordinance include the three trustees assigned to fiscal matters. The ordinance will move to the full village board for consideration on the next scheduled meeting date. If approved, the process and petition timelines will be publicly posted and available to residents.

Local construction context

The move toward potential bond financing in Glen Carbon comes as nearby school districts and municipalities also plan significant construction work this year. One local school district is preparing one of its busiest summers of construction in memory, with secure double-entry systems, roof replacements, solar installations and a large middle-school addition among projects funded by recent bonds, insurance and debt certificates. Those school projects illustrate how local governments are juggling safety, infrastructure and funding challenges at the same time many communities are seeking outside construction dollars.

Community landmarks and background

The village has a history of using bond funding for public works and community projects; a past bond supported the restoration of a century-old schoolhouse into a heritage museum. That building, now a local museum, stands as an example of how bond proceeds can be used for long-term community benefit when voters approve spending plans.

What to expect next

The full village board will consider the ordinance that would allow bond authorization. If the board approves, residents will have 30 days to file a petition to force a March 17, 2026 public vote. Meanwhile, staff will pursue bids and continue talks with the state and outside water providers to determine the most cost-effective path forward.

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Frequently Asked Questions

Key features at a glance

Topic	What it means	Timeline	Funding source
Loan denial	State did not award the requested $27 million due to scoring	Decision already made; state did not comment	Illinois EPA loan (not awarded)
Bond authorization	Board may approve authority to sell bonds for the project	Ordinance considered at next full board meeting; petitions 30 days after passage	Private bond markets
Back door referendum	Residents can petition to place bond question on ballot	Ballot date would be March 17, 2026 if petition succeeds	Voter approval required if petitioned
Alternatives	Continue purchasing water from outside provider under contract	Decision informed by construction bids and cost comparisons	Contract payments to water provider
Next steps	Board vote, petition window, soliciting construction bids	Board meeting date set; petition window would start after board approval	Pending (state, bond market, or contract)

Deeper Dive: News & Info About This Topic

Additional Resources

• The Intelligencer: Glen Carbon — Water treatment plant loan denied
• Wikipedia: Glen Carbon, Illinois
• RiverBender: Edwardsville School District outlines summer 2025 construction projects
• Google Search: Edwardsville School District summer 2025 construction
• The Intelligencer: Glen Carbon Heritage Museum anniversary
• Google Scholar: Glen Carbon Heritage Museum
• The Intelligencer: Glen Carbon trustee meeting recap
• Encyclopedia Britannica: Referendum
• KSDK: Madison County, Illinois consolidated election results 2025
• Google News: Madison County Illinois consolidated election results 2025