Council approves Circle Drive annexation terms including sewer design, cost split and tax proration

The Streator City Council approved a motion to accept the draft annexation agreement for the Circle Drive addition, setting the terms the city will offer to residents in that subdivision.

Under the terms presented, the city will design, permit and oversee construction to provide sewer service to the area within five years from execution of the annexation agreement. Staff estimated the project cost between $3.3 million and $4.0 million depending on alignment decisions and surveying; absent grant funding the agreement calls for the cost to be split 50/50 between the city and the subdivision property owners. With roughly 100 lots identified, staff said a $3 million project split evenly would result in an approximate per-lot share of $15,000; the agreement specifies a percentage split rather than a fixed per-lot dollar amount.

Property owners who choose to participate would have up to 10 years to repay their share at an interest rate described in the draft as 4% if they elect a payment plan; staff said there would be no upfront connection cost to homeowners and the city would make one attempt at lawn restoration following construction (with encouragement for homeowners to water restorations). The agreement requires the city to make at least two attempts to secure up to 100% funding from the Illinois EPA and the applicable funding program before assessing property owners.

The annexation terms also provide that city taxes for annexed properties will be phased in over five years via a rebate approach (staff described an 80% rebate in the first year so property owners would pay 20%, then 60% rebate the second year, etc.). Staff reported they have about 47–48% of residents indicating interest and expect enrollment to increase once the offer is presented.

Council voted to accept the draft terms by roll call and authorized sending the agreement to residents and continuing outreach meetings.