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A Motion to Approve the Lead Service Line Replacement Plan for 2027
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Introduction
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Based on the feedback received from the Board in early May on the draft Lead Service Line Replacement Plan submitted to the Illinois Environmental Protection Agency, Village staff updated private-side lead service line replacement assistance strategies and presented them to the Finance Committee in mid July. Village staff plans to begin implementing these strategies in 2027 as part of the Lead Service Line Replacement Plan.
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Recommended Action
Approve the Motion.
Prior Board Action
The Village Board has taken the following prior action:
• On May 5, 2026, the Village Board approved the Lead Service Line Replacement Pilot Program to offer low-interest loans to cover private side lead service line replacement for those residents impacted by the 2026 Water & Sewer Improvement Project (RES 26-202).
Background
In early May, Village staff provided an update on the most recently submitted draft of the Village’s Lead Service Line Replacement Plan. At that time, Village staff were seeking direction on the low-interest loan program for residents impacted by the annual Water & Sewer Improvement projects and for feedback on various private side lead service line replacement assistance strategies. While addressing the underlying financial impact of any additional assistance provided for private side lead service line replacement, the Village Board seemed to coalesce around an income-based hybrid model.
As part of the income-based hybrid model, the Village would seek to provide full replacement assistance for those households that qualify for principal forgiveness under the state’s Public Water Supply Loan Program and Community Development Block Grant, and provide capped cost sharing for other households falling below the 120 percent AMI threshold. The following sections explain these and additional strategies meant to assist residents with private side lead service line replacement.
PUBLIC WATER SUPPLY LOAN PROGRAM - In March 2027, Village staff plan to submit a pre-application for lead service line replacement covered by the Public Water Supply Loan Program in fiscal year 2028. As part of this program, principal forgiveness is available on a sliding scale for properties within census tracts that are below the state’s median household income. In the meantime, Village staff plans to prioritize potential water main improvement projects lying within these census tracts beginning with project year 2028. Village staff are also reviewing the ability to combine principal forgiveness received as part of the Public Water Supply Loan Program with Community Development Block Grant funds to ensure that all available financial assistance is provided to those residents below the 80% AMI threshold.
PRIVATE SIDE LEAD SERVICE LINE REPLACEMENT OUTREACH - Many property owners do not realize that the public side of their service line has already been replaced by the Village as part of past water main improvement projects. The Village has approximately 4,093 service lines in which the private side is the only portion requiring replacement. As part of this strategy, Village staff would post a Request for Proposals to identify a contractor to assist the Village with outreach of these residents for the potential to create project groups that may qualify for a reduced rate for replacement based on the size of their group. As part of this outreach, Village staff would ask the contractor to include a QR code for a Village survey to collect income and household size information from residents who believe they may qualify for additional assistance as part of the Community Development Block Grant (below 80% AMI).
This outreach will also assist Village staff in identifying and quantifying the group of property owners that might benefit from a targeted cost-sharing program for those with income levels between 80 and 120 percent AMI that do not qualify for other state and/or federal programs. Based on HUD data from 2018-2022, it is believed that 18 percent of Oak Park residents have income levels below 80% AMI and an additional 8% have income levels between 80-100 percent AMI. Unfortunately, this data does not identify how many of those residents are property owners with existing lead service lines. By gathering additional information as part of this outreach program, Village staff would be able to identify the potential financial burden associated with this targeted assistance program and determine a sustainable, annual allocation of funds to a cost share program for these targeted income levels.
COMMUNITY DEVELOPMENT BLOCK GRANT - As in years past, the Village would allocate a set amount of CDBG funds to lead service line replacement. In previous years, this allocation covered the entire cost of lead service line replacement for qualifying property owners; however, moving forward, the Village plans to cap this assistance at $5,000 per qualifying household to allow for the funds to be most impactful Village-wide. Qualifying households can be identified as part of a social media and/or OP/FYI outreach program or as part of the private side lead service line replacement outreach strategy.
LOW INTEREST LOAN PROGRAM - Village staff would like to continue implementation of the program for residents impacted by the annual Water and Sewer Improvement projects. The number of annual loans would be capped at 75 with an annual maximum contribution of $600,000 from the Water and Sewer Fund. If maximum annual participation is not reached by residents impacted by the annual Water and Sewer Improvement projects, the remaining available loans could be offered to other property owners interested in upgrading their service line outside of these project areas on a first-come, first-served basis. If successful in the short term, the loan would be self-revolving in as little as five years. To remain successful in the long term, the loan would need to continually experience maximum annual participation of 75 property owners.
Timing Considerations
Approving the Lead Service Line Replacement Plan for fiscal year 2027 at this time allows for any necessary financial obligations associated with it to be budgeted as part of the fiscal year budgeting process. This would prevent the need for any budget amendments associated with the plan, as known to date.
All of the initiatives presented were also included in the Water and Sewer Fund’s capital budget for 2027 through 2031, which informs the Water and Sewer Rate Study for the same time period. Providing feedback in a timely manner will also allow for any necessary changes and/or considerations ahead of the 2027 water and sewer rate recommendations to the Village Board in November 2026.
Financial Impact
The 2027 budget impacts associated with the Lead Service Line Replacement Plan are as follows and were included in the Water and Sewer Rate Study and in the 2027 Water and Sewer Fund capital budget requests.
Lead Service Line Replacement Program- Public: $552,000. This allocation increases by 5% annually to account for inflation and escalation of costs associated with lead service line replacement. This allocation covers the cost of the public side lead service line replacement as part of the Village’s ongoing Lead Abatement Program.
Lead Service Line Replacement Low Interest Loan Program: $600,000. This annual allocation will allow for the program to continue to assist those residents with private lead service line replacement impacted by the annual Water and Sewer Improvement Projects. This expenditure would be offset by loan payments coming back into the program from projects completed in 2026.
Lead Service Line Replacement Program- Private Outreach: $150,000. Village staff are planning to post a Request for Proposals for 2027 for outreach targeting those residents who only need to complete private lead service line replacement. It is anticipated that a group rate could be offered should enough residents choose to participate. Driving down costs for residents while assisting the Village in reaching its annual replacement rate. The dedicated funding for this project would be for possible community outreach and engagement, not to offset private side replacement costs.
Operations Impact
While lead service line replacement has been a core service delivery of the Public Works Department, it is anticipated that as the replacement rate becomes more demanding, so will the need for manpower to coordinate replacement, ensure that plans are to code and Village standards, complete the replacement of the public side lead service lines, and inspect restoration efforts following replacement to ensure that Village standards for the roadway and parkway are maintained. It is anticipated that leaning on a consultant for additional outreach might reduce some of the burden on staff; however, at this time, it is unclear if the burden will increase exponentially, requiring the need for additional Public Works Department full-time staff.
DEI Impact
In general, the implications of lead exposure and the burden of aging infrastructure are not distributed equally across communities. Communities most likely to benefit from targeted lead service line replacement assistance include: low-income households that cannot afford replacement costs, historically marginalized communities that have experienced underinvestment in infrastructure, renters whose landlords may not replace privately owned lead service lines without incentives or requirements, and communities of color, which have often faced disproportionate environmental health risks due to historic housing and infrastructure policies. Providing financial assistance mechanisms helps ensure that residents are not required to choose between safe drinking water and other essential household expenses.
Community Input
There has been no formal engagement with the community on this item; however, the Village Board heard several public comments regarding this issue in April and May 2026.
Staff Recommendation
Implement the above- described private lead service line replacement assistance strategies in 2027.
Advantages:
• Identifies mechanisms for implementation, and their associated budgetary allocations have been included in the Water and Sewer rate study.
• Provides a path forward for additional identification of income levels in need of assistance and will inform pathways of assistance for those income levels.
Disadvantages:
• There is currently no assistance strategy identified for those residents between 80 and 120 percent AMI, as identified as part of Village Board feedback on May 5, 2026.
Alternatives
Alternative 1:
The Board can pause implementation of one or more of the private side lead service line assistance strategies described.
Advantages:
• This action would allow the Village Board ample time to gain additional information on the strategy(s) in question.
Disadvantages:
• This action could delay progress of lead service line replacement or cause the Village to miss critical deadlines for state and/or federal assistance.
Anticipated Future Actions
Village staff plan to return in mid-2027 with an update on the outcomes of the targeted private side lead service line replacement outreach, and proposed replacement plans for 2028 through 2030.
Prepared By: Erin Duffy, Deputy Public Works Director
Reviewed By: Rob Sproule, Public Works Director
Approved By: Kevin J. Jackson, Village Manager
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