UPDATED 12:56 P.M.
PEORIA, Ill. – The city of Peoria won’t own the water system at least for the next five years following city council action Tuesday night.
The council voted 7-4 to stay with the status quo, allowing the system to remain in the hands of Illinois American Water Company. The city has a buyout option every five years under an agreement that dates back to 1889.
A consultant, hired by the city at a cost of $100,000, determined taxpayers would pay anywhere from an estimated $277 million to $345 million, and that does not factor in borrowing costs or whether it would lead to cheaper water rates.
City Public Works Director Rick Powers says given all the problems and debt the City of Indianapolis encountered while owning its own water system, Peoria owning its water system is a bad idea.
“The only positive outcome that Indianapolis had as a result of owning a water company was its sale, and recouping the losses that were incurred over the ten years,” said Powers.
Opponents of the buyout, including Mayor Rita Ali, said the city can’t afford to take on more debt. She listed the amount the city owes in unfunded pension obligations every year from 2025 to 2039, soaring from almost $36 million to almost $77.8 million during that time.
“I just ask that you keep these numbers in mind as we consider taking on additional debt, considering our existing debt, an unknown recession, and other debt obligations,” said Ali.
City Manager Patrick Urich said he’s against the buyout, but at-large council member Zach Oyler said he can’t explain to his constituents why Peoria households pay more than comparable communities that don’t have their water system run by Illinois American Water. Oyler, and other at-large council members Michael Vespa and Kiran Velpula and 5th District representative Denis Cyr all voted to move forward on the buyout process.
Top water company executives, including President Rebecca Losli, were on hand for the council meeting.
“Peoria is very important to us,” Losli told the council, noting the company has 80 local employees and provides upgrades in such areas as water quality and cybersecurity.
Overall, Losli said Illinois American Water said it plans to invest $200 million over five years on water system improvements.
(Contributing: 25 News)
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