In a unanimous vote at Tuesday night’s meeting, the Delavan City Council approved the issuance of $1.5 million in municipal bonds to fund long-overdue improvements to the city’s aging sewer infrastructure. The bonds will be sold by the Bank of Pontiac, which will facilitate the financing of the project.

The centerpiece of the initiative is the dredging of Delavan’s wastewater lagoon, which was constructed in 1984 and has never been dredged in its 41-year lifespan. Over time, the lagoon has accumulated significant amounts of sludge, sediment, and non-organic material, reducing its capacity to effectively treat the city’s wastewater. Nathan Barnett, Delavan's superintendent of public works, warned that failure to address the buildup could leave Delavan vulnerable to fines and regulatory action from the Illinois Environmental Protection Agency (IEPA).

In addition to dredging, the bond-funded improvements include a comprehensive inspection of the city’s sewer lines using camera technology. The footage will help prioritize repairs by identifying root infestations, structural damage, and areas requiring pipe lining or full replacement. These upgrades are expected to reduce the volume of debris entering the lagoon, improving its long-term performance and reducing future maintenance costs.

The bonds will be serviced over a 15-year term, with annual payments totaling just over $150,000. However, city officials acknowledged that Delavan’s sewer operations have been running an annual deficit for several years, with expenses outpacing revenue from sewer fees. Adding a $150,000 line item annually to the expense of the sewer operations will only exacerbate the problem. To address this funding gap, the council is exploring the formation of a new additional tax increment financing (TIF) district. If approved, the district would capture future increases in property tax revenue to help cover the cost of bond repayment.

The council’s decision reflects a growing recognition of the need to modernize essential systems and plan for long-term fiscal health. Residents can expect updates as the city moves forward with engineering assessments, permitting, and the initial phases of lagoon dredging.