ACTION REQUESTED:
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Communication from the City Manager and Director of Public Works with a Request to APPROVE A RESOLUTION Amending Resolution No. 18-073-A Setting Fees for the Peoria Combined and Sanitary Sewer District Increasing the CITY’S SANITARY SEWER LATERAL FEE from 1.2735/CCF to 1.3028/CCF Effective May 1, 2022.
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BACKGROUND: The City of Peoria receives revenues from two sewer rates. The Greater Peoria Sanitary District (GPSD) currently bills sewer customers. Peoria Sewer rate increases are planned to occur on May 1 to coincide with GPSD’s fiscal year and billing cycles.
Revenues from the City’s lateral sewer rate is used for operation and maintenance of the City-owned sanitary and combined sewers. This rate is charged to all customers connected to a City sanitary or combined sewer. Maintenance includes cleaning the sewers, repairing broken pipes and manholes and responding to basement backup problems. The 2022/2023 City budget was approved assuming an increase in City lateral sewer rates. During the planning for the Capital and CSO fee increases approved by City Council last year, staff included the 2.3% increase in the lateral fee in the financial projections. These projections are included in the City’s IEPA Loan applications for CSO projects.
FINANCIAL IMPACT: The average 3-person household uses 17.25 CCF (100 cubic feet) of water every 3 months. This equates to about 12,900 gallons.
Currently, the average, quarterly, residential customer bill for a household connected to a City sewer is $63.09, and the average, quarterly, residential customer bill for a household connected to a GPSD sewer is $71.34.
The proposed sewer lateral rate changes will increase the average, quarterly, residential customer bill for a household connected to a City sewer by $1.75 beginning May 1, 2022.
NEIGHBORHOOD CONCERNS: Well-maintained sewers are a benefit to all neighborhoods.
IMPACT IF APPROVED: Sewer revenues will match the anticipated revenue in the 2022/2023 budget.
IMPACT IF DENIED: Sewer revenues will be less that the anticipated revenue in the 2022/2023 budget.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Invest in our infrastructure and transportation.
2. Reinvest in neighborhoods.
3. Have an efficient government.
DEPARTMENT: Public Works