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Council hears first reading to realign water fixed fees to support IEPA loan projects
Summary
City staff presented a first reading of an ordinance that would realign water fixed fees by meter size (based on a Raftelis rate study) to improve revenue for planned IEPA‑funded water projects; staff said the proposal shifts more of the fixed fee burden to commercial meters and Illinois American while protecting everyday residents.
City administrator Fagan Shue and city engineer Dennis Carr presented the first reading of an ordinance to adjust portions of the water and sewer rate schedule, formalizing recommendations from a Raftelis rate study discussed in committee. The proposal would realign fixed fees based on meter size to increase revenue capacity needed to qualify for an Illinois Environmental Protection Agency (IEPA) loan to fund projects including Water Tower 3 and the North Cummings water main.
Dennis Carr said the city’s water utility has operated with deficits in recent years and that restructuring fixed fees shifts more of the cost burden to commercial properties and larger meters while providing relief to typical residential customers. Carr stressed the change is intended to demonstrate to IEPA that the city can afford the loan and the associated projects.
Finance director Paulette Hurd confirmed the current ordinance includes an automatic adjustment (CPI, minimum 2.5%) and staff indicated the new fixed‑fee structure will be capped through 2033 so council can re‑evaluate. Council members asked procedural and timing questions about which capital projects are locked in and how spending over $25,000 will return to council for approval.
This was the ordinance’s first reading; no final vote was taken. Councilors requested additional clarifying detail about which capital projects will proceed under the IEPA plan and noted that any specific purchases or contracts above the city’s purchase threshold will require future council approval.
