Elmwood loses $1M in fed funds

By MOLLY RICHESON
For The Weekly Post

ELMWOOD – The City of Elmwood has lost $1 million in federal funding for planned improvements of its wastewater lagoons.

U.S. Rep. Eric Sorensen had requested funding in May 2024 to remove sludge from the bottom of the wastewater lagoon’s four cells (ponds) and to replace the system’s existing rock filter in the 2025 fiscal year.

Wrote Sorensen in his request, “The project is an appropriate use of taxpayer funds because the lagoons discharge into a nearby creek which empties into the Illinois River. This project will protect the waterways from contamination by sewage.”

At the time, Elmwood Mayor JD Hulslander said in a press release, “These requested funds for the City of Elmwood wastewater lagoon upgrade are a great benefit and would have a huge financial impact for our community. The City of Elmwood will benefit not only immediately but generationally. The Community Project Funding request would allow us to prevent issuing bonds, raising water and sewer rates, or raising property taxes for our community.”

However, that funding was stripped along with all other congressional earmarks in the spending bill signed by President Donald Trump last week.

The City of Elmwood is expected to reapply for funding in the 2026 fiscal year but will not wait for those funds before moving ahead with the project, required by the Illinois Environmental Protection Agency to be completed by November of this year. Instead, should funding be approved in the next fiscal year, that money will be used to pay down a $2 million loan the city intends to take from the U.S. Department of Agriculture.

In other business at its March 18 meeting, the council said it is researching options to replace ERP Pro 10 software licensed through Tyler Technologies. ERP Pro 10 handles financial tasks of small to mid-size local governments, including payroll, utility billing and property tax management, but will be phased out as of December 2026. Tyler Technologies offered another option with a price tag significantly higher than what the city pays now and wants an answer by June. Council members are contacting other municipalities to check for other software options.

The city also agreed to pay an additional $36,220 to pave privately owned land adjacent to the city parking lot located south of Main Street. Last month, the council approved a $279,692.51 bid from Stark Excavating of Bloomington to pave the city-owned part of the lot. The additional money will pave parcels owned by business owners Jody McKinty, Terri Bednar, Alan Howerton and Emma Manness.

The council said it will offset the cost with funds for street maintenance and sidewalk funds not already earmarked. That way all the work can be finished at once.