ACTION REQUESTED:
Title
Communication from the City Manager and the Corporation Counsel with a Request for the Following:
A. APPROVE an INTERGOVERNMENTAL AGREEMENT Between the City, Peoria County Treasurer and Peoria County to Authorize the Peoria County Treasurer as the City’s Billing Agent to Include the City’s Refuse and Garbage Collection Fees to the Annual Property Tax Bills; AND
B. ADOPT an ORDINANCE Amending Chapter 13 of the City CODE for the Billing of the City’s REFUSE AND GARBAGE COLLECTION FEES to the Property Tax Bills by the County Treasurer as the City’s Billing Agent Commencing in 2016.
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BACKGROUND:
Prior to January 1, 2012, Illinois-American Water Company voluntarily billed the City’s refuse and garbage fees onto the water bills for its customers. When the IL-AWC notified the City that it no longer desired to continue adding the City’s garbage fees to the water bills to its city resident customers, the City contracted an outside vendor to bill the City residents like any other private consumers, through mailing of the garbage fees as bills. The City has paid the vendor approximately $300,000 per year to bill the garbage fees to City residents. This has not been the most effective or efficient way to bill the City’s refuse and garbage collection fees.
The Intergovernmental Agreement with the County and the County Treasurer will improve the method of billing of the City’s refuse and garbage collection fees by including these fees onto the annual property tax bills mailed out by the County Treasurer. The Agreement calls for the City to defend the County and the Country Treasurer on any legal challenges to the addition of the refuse and garbage collection fees to the property tax bills and the City will pay the County $150,000 annually for the County Treasurer to be the City’s billing agent.
The corresponding Ordinance amends Section 13-60 of the City Code to authorize the County Treasurer to be the City’s billing agent and to allow the City’s refuse and garbage collection fees to be included in the property tax bills.
FINANCIAL IMPACT: The City will realize the annual cost savings of $150,000 by paying the County Treasurer to be the City’s billing agent. The current collection rate for garbage billing is 90% of what is being billed. Under this proposed agreement, the current property tax collection rate is 99%.
NEIGHBORHOOD CONCERNS: Not applicable.
IMPACT IF APPROVED: The City will be utilizing more efficient and effective method of billing of the City’s refuse and collection fees.
IMPACT IF DENIED: The City will continue to pay the outside vendor $300,000 annually to mail out the City’s refuse and garbage collection fees.
ALTERNATIVES: The Council can direct City staff to do the billing of the City’s refuse and garbage collection fees or seek an alternative private vendor to do the billing at a reduced rate than the current vendor.
EEO CERTIFICATION NUMBER: Not applicable.
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
DEPARTMENT: Legal