As shared in our recent notice, Sleepy Hollow’s water main infrastructure is aging far beyond its intended lifespan, requiring critical replacements to maintain system functioning and safety, and to prevent costly emergency repairs. While the current $30 Demand Charge on monthly bills covers costs of routine maintenance and operations, it is insufficient to fund the large-scale infrastructure overhauls now required to stabilize our system. To address these urgent needs without accruing interest costs, the Village will borrow the initial funds directly from its own Water Fund reserves. Residents will replenish these reserves through the new $50 monthly Water Main Infrastructure Fee on their water bills, self-funding critical upgrades and replacements. The following FAQs provide further details on how this funding method was decided, options for local financial assistance, the project and fee duration, and exactly who is affected by these updates.
How is the Infrastructure Replacement Project being funded?
The Village evaluated several funding mechanisms to determine the most fiscally responsible path forward:
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Government Loans & Grants: Sleepy Hollow Village is unlikely to qualify for many federal or state grants due to our healthy financial standing and a median household income that exceeds the national average. Moreover, the current priority for government funding is to replace lead service lines—ours are all copper. It would be many years before we would get on the waiting list for funding for system upgrades and replacements.
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Commercial Bank Loans: This option was determined to be uneconomical. Traditional loans require residents to pay back the principal plus substantial interest, increasing the total cost of the project for every household.
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SSA Tax/Bond or Referendum: These options were briefly entertained but dismissed. Both are costly and time-consuming (often 2+ years). Historically, referendums for infrastructure projects like watermain upgrades and replacements face a high risk of failure, which would delay critical repairs and lead to even higher emergency repair costs.
Self-Funding (Infrastructure Fee): The Village determined that borrowing from our own Water Fund reserves and having the residents replenish the fund through a new Water Main Infrastructure Fee line item on the water bills is the most expeditious and responsible method. This ensures funds are available immediately to address urgent needs without accruing interest. Our initial and most critical project is replacing the Hillcrest water main, which will cost nearly $1 million. At $50/month, it will take about two years to replenish the reserves across our 1,050 households. Once restored, these funds will cycle forward to finance the next priority project -- the Winmoor water main -- establishing a continuous, revolving self-funding mechanism for our long-term water infrastructure plan.
What assistance is available for residents struggling to pay their water bills?
We recognize that fee adjustments can be a burden. The Village and local agencies offer several assistance options:
Village of Sleepy Hollow Senior Discount
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Senior Assessment Freeze Reduction: Residents who currently qualify for the Kane County Senior Citizens Assessment Freeze will be eligible for a reduced infrastructure fee of $25 per month.
How to Apply: If you qualify and would like to take advantage of this discounted rate, please contact Sleepy Hollow Village Hall.
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For details on qualifying for the freeze, please visit the Kane County Assessment Office.
Additional Assistance Programs
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Low Income Household Water Assistance Program (LIHWAP): Provides financial relief for water and wastewater services for households facing disconnection. https://dceo.illinois.gov/assistanceforindividuals/energyassistance.html
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LIHEAP: Primarily for energy but often coordinates with water assistance for eligible households. 1-833-711-0374 https://dceo.illinois.gov/assistanceforindividuals/energyassistance.html
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Dundee Township Emergency Assistance: Offers support to residents facing financial hardships, including utility disconnections. https://www.dundeetownship.org/community/assistance_programs.php.
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Salvation Army USA Utility Assistance: Offers emergency rent and utility assistance to keep families who are struggling to pay basic bills in their homes. https://www.salvationarmyusa.org/utility-rent-assistance/
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St Vincent DePaul: https://www.svdpdundee.org/assistance (224) 520-1589
Note: Program availability and eligibility requirements are subject to change. Residents are encouraged to verify details via the provided links.
Is the Water Infrastructure Fee increase permanent?
The increase is structured as a permanent adjustment to ensure the long-term health and safety of the water system. However, the Village Board is committed to an annual review of the fee. Should the Village’s needs change or should external funding (such as state or federal grants) become available, the fee level will be reconsidered.
If I have a private well, does this increase apply to me?
No. This fee applies only to households connected to the Village water system. Residents with private wells are not impacted.
If I have a hydrant fee, does this increase apply to me?
No. This fee applies only to households connected to the Village water system. Residents who are not connected are not impacted.
Are these funds guaranteed to be used for water projects?
Yes. All revenue from this fee will be strictly segregated. Village Water & Sewer operates under a separate enterprise fund—independent from the Village’s General Fund for all other village operations. It will be tracked through a dedicated line item in the Village’s financial statements to ensure 100% transparency and accountability.
When will the replacement projects begin?
Construction for Phase 1 – Hillcrest watermain -- is tentatively scheduled for Fall 2026 or Spring 2027. Subsequent phases will be scheduled annually or biennially, depending on system urgency and funds available.
How will I be notified if a project affects my street?
The Village will provide updates through:
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Village Board Meetings: 1st & 3rd Mondays @ 7:30pm
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The Village Website: Current and upcoming project phases.
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Water Bill Inserts: Progress reports and timeline updates.
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Road Signage: Physical signs will be posted in affected areas well in advance of any construction.