Morrison, IL, City Administrator Barry Dykhuizen issued this Informational Bulletin regarding October 2014 water and sewer rate increases.
Sewer Utility
By now, most residents are aware that the City is preparing to break ground on a new Wastewater Treatment Plant. The current plant in Waterworks Park is 75 years old. It’s design, mechanics, basic infrastructure, and ability to meet more-stringent EPA water quality standards is simply inadequate.
Wastewater Treatment Plants are expensive. The cost to build Morrison’s water treatment facilities is over $20,000,000. This is, without question, a huge burden for a community of 4100 residents.
Cities generally finance these projects through low-interest loans administered by the Illinois Environmental Protection Agency. This is, almost always, the best option to pay for large projects, such as a new treatment plant.
As with any loan, the borrower must prove to the lender that income is sufficient to meet the annual debt service obligation. Morrison’s “income” is revenue generated directly, and solely, from customers’ utility bills. The EPA reviews the City’s rates, operating budgets, and future obligations prior to approving the loan.
Therefore, the utility rate increases are determined based on the amount necessary to satisfy the lender, the EPA. The most recent increase is another step in the process of bringing the rates to that amount.
The City does expect the rate increase to be less than originally stated, because of new borrowing terms being introduced by the EPA next year. And although the cost remains, undoubtedly, high, this is a brick-and-mortar, long-term, critically necessary investment in the future of our Community.
Doing this project costs a lot, but doing nothing costs a lot more.
Water Utility
Residents will also notice a change on the Water portion of their bill. Moving forward, the City expects water rates to stabilize with modest increases only necessary to meet operating expenses and capital needs, and to maintain adequate reserves.