USDA Loan Will Help The Local Water

On Friday, June 7, 2024 Congresswoman Nikki Budzinski (IL-13) announced that the U.S. Department of Agriculture (USDA) has awarded the Fosterburg Water District a low-interest loan of $4.2 million to improve clean water distribution to rural households in Madison and Macoupin Counties. The funds were approved through USDA Rural Development’s Water and Waste Disposal Loans and Grants Program.

Congresswoman Budzinski said “ I’m glad to announce that the Fosterburg Water District will be receiving a $4.2 million low-interest loan as they work toward connecting their Madison and Macoupin County customers to the Alluvial water system. These resources will help to extend service to 30 new households and set the stage for families to gain more consistency in rates and quality down the road.”

“We are excited and appreciative to receive these funds from USDA-RD. This is a vital project for FWD to achieve our goal of being part of the bulk water producer that supplies potable water to our system. While we understand that bulk water rates will continue to rise, we believe we can now control the increases by being a part of the water producer. Our current situation does not provide us the opportunity to have any input on our bulk water rates.

As a member of Alluvial we will not only have input on the rates, but we will also have a vote on how the system is operated. We are confident that Alluvial, as a nonprofit, will provide a clean and safe potable drinking water source at the most efficient bulk water rates possible. This funding plays a vital role in making this project a reality for FWD, thereby keeping water rates to our customers as low as possible,” said Mark Voumard, District Manager for the Fosterburg Water District.

The Fosterburg Water District (FWD) is a nonprofit water district that began providing clean drinking water to area residents ib the mid-1970s. Today, FWD encompasses nearly 125 square miles in parts of Madison and Macoupin County and provides water service to over 11,000 residents either directly or through bulk water sales to neighboring communities.

The FWD currently purchases bulk water from Illinois American Water Company, a for-profit water company that is publicly traded on the New York Stock Exchange. In 2021, FWD became a member of Illinois Alluvial Regional Water Company (IARWC), a nonprofit corporation with seven members: Jersey County Rural Water Company, the City of Carlinville, The City of Bunker Hill, the Village of Dorchester, the Village of Fieldon, the Central Macoupin County Rural Water District and the Fosterburg Water District. As a member, each entity has a representative on Alluvial’s board.

The $4.2 million low-interest loan from USDA Rural Development will be used for FWD’s Phase V Expansion project, which will include the installation of approximately 20 miles of 4-inch, 6-inch and 8-inch water main infrastructure to increase capacity near the proposed future connection point to the Alluvial water system. This project will also expand potable water service to an additional 30 customers.