Peoria staff outline multi-year utility rate increases, council approves notice of intent

Peoria city staff presented results of a multi-utility rate study March 4, asking the City Council to begin the public process for rate increases for water, wastewater and solid waste.

The study, led by Deputy City Manager Kevin Burke, CFO Sean Bridal and Deputy Finance Director Peter Christiansen with consultant Brook Tasha of FCS, recommends a combined average bill increase of 5.5% for fiscal 2026 and 5.1% for fiscal 2027. Staff said that translates to roughly $6 more per month for an average residential customer for each of the two years.

City staff said the recommended adjustments reflect rising operating and capital costs, earlier rate increases and specific project timing. Water increases in the recommendation are 3.5% in both years; sewer would rise about 5.8% (driven by accelerated capital projects), stormwater would see no increase in this cycle, and solid waste would increase 10% in FY 2026 and 8% in FY 2027.

Staff described the utilities as enterprise funds that must recover their costs from users. Bridal said the city runs “five enterprise funds” and that the rate study evaluates cost-of-service, revenue stability, equity and conservation incentives. The presentation cited cost drivers such as capital cost inflation, water-system redundancy,…