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Neoga council delays planned 5% water and wastewater rate increase, asks for rate study
Summary
The City Council voted unanimously to postpone a scheduled 5% water and wastewater rate increase set for May and asked to place a free rate study from the Illinois Rural Water Association on a future agenda.
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The Neoga City Council voted on March 24 to postpone an automatic 5% annual increase to both water and wastewater rates that was scheduled to take effect in May. City Administrator and Clerk Brenda Evans told the council the increase is routine but can be postponed if the council chooses.
"The annual water and wastewater increase of 5% for each will take effect in May," Evans said, and after reviewing fund balances Commissioner Letizia said he would be fine with delaying the increase. Commissioner Letizia moved to postpone the increase; Commissioner Edwards seconded, and the motion carried 4-0.
City Treasurer Diana Foor told the council she contacted the Illinois Rural Water Association, which can conduct a rate study for the city at no charge. The council reached consensus to place authorization for that study on the next meeting agenda, allowing staff and the outside group to evaluate long-term rate needs and revenue adequacy.
The postponement is a pause of the scheduled May increase only; no formal rate rollback or long-term change was adopted. Council members indicated they will review the forthcoming rate-study recommendation and consider any formal action at a subsequent meeting.
