PEORIA, Ill. – A public buyout of Peoria’s water system would cost the city roughly $277 million, not taking into account borrowing costs or whether the purchase would lead to cheaper water rates for Peorians.
A report from consulting firm Woodard & Curran shows Peoria and Champaign water systems, currently run by Illinois American Water Company, have the highest rates among Central Illinois communities.
District 5 Council member Denis Cyr said he’d like to pass a profitable water business on to future generations in Peoria, but he needs more information about the potential buyout.
“It will be painful, it will be painful the next 30 years, if we get a new 30-year mortgage on this business…but, would that be great to have a $42 million a year revenue for the next generation,” Cyr said.
Mayor Rita Ali also expressed concerns about making such an expensive purchase.
A nearly 130-year-old franchise agreement with Illinois American Water Company allows Peoria to consider a buyout of the water company every five years.
The mayor’s concerns include debt and debt service liabilities going forward.
“Whether we buy, or whether we wait another five years and reconsider again, I think we continue to honor that promise,” Ali said.
Woodford & Curran is being paid $100,000 to conduct the study on water system costs for the City of Peoria.
The City Council is expected to vote on the proposed buyout at its Oct. 24 meeting. A decision has to be made by Nov. 3.
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