Sangamon Sun

City of Lincoln City Council met March 26.

Here is the minutes provided the Council:

Public Hearing

Lincoln College, Johnston Center

300 Keokuk Street / Lincoln, Illinois

The Public Information Hearing of the City Council of Lincoln was called to order by Mayor Seth Goodman at 6:01 p.m.,with proper notice given.City Clerk Peggy Bateman called the roll call.

Present: Alderman Steve Parrott Alderman Tracy Welch Alderwoman Michelle Bauer Alderman Ron Fleshman Alderman Ron Keller Alderman Rick Hoefle Alderman Jeff Hoinacki

Present: Treasurer Chuck Conze City Clerk Peggy Bateman

Streets Superintendent Walt Landers

Waste Water and Treatment Manager Tim Ferguson Building and Safety Officer Wes Woodhall

Absent: Alderwoman Heidi Browne City Attorney Blinn Bates

Presiding: Mayor Seth Goodman

Alderman Welch began with an introduction from the stage. He turned discussion over to Mrs. Christy Crites and Mrs. Shannon Brady of Crawford, Murphy & Tilly Inc.

Provided by Crawford, Murphy & Tilly Inc.:

Mrs. Christy Crites and Mrs. Shannon Brady of Crawford, Murphy & Tilly Inc. (CMT) recapped a presentation that was previously offered at a Lincoln City Council meeting in early March 2018.

CMT submitted a long-term control plan. Mrs. Crites states that the design has already started with the Union Street Pump Station. Everything must be completed by Oct. 1, 2021.

Projects and total cost - project range beginning in 2019: $1,200,000-$1,400,000 - over 20 years. The numbers are dependent on loan interest rates and the final project costs.Would be financed through the Illinois Environmental Protection Agency (IEPA) - a loan with interest rates.

Mrs. Crites explained what the typical year current income is on the residential and commercial income sides. She said the total current income is $2,826,000.

The bills are currently $24 per month. IEPA looks at affordability for residents which is actually at $53.13per month.

Mrs. Brady took over from this point in the presentation, and shared that a 4,000 a month water user is considered the average consumer. If a water customer uses this amount per month,the base rate for their bill is $35. At 8,000 gallons a month, they would pay $55 per month.

Mrs. Crites said this is a snapshot in time of the rates that they analyzed. She said commercial users will have the same rates as residential users. She mentioned the city must keep up with inflation. Both presenters will be available for questions after the hearing.

Mayor Goodman invited members of the public to speak into the microphones that were available on either side of the theater.

Public Commentary:

Mrs. Cindy Morrow asked about the people of Lincoln who are low income.

Alderwoman Bauer said at this time the $24 base rate is across the board for all people, across all incomes. There is nothing factored in for a socioeconomic status.

Mr. James Cabbot started his comment off by explaining that some time last year underneath his crawl space he found a large whole in his water system. He inquired about a water leak in buildings. He wanted to know how scenarios such as this (water leaks) would be accommodated.

He wanted to know if there were leak adjustments and adjustments for those who fill swimming pools. Mr. Cabbot asked if there would be discussion about making such adjustments.

Alderman Welch said he and other councilmembers reached out to CMT today, (March 26). He said cases could be handled on a case by case basis. He mentioned an exception policy relating to pools etc. In theory, a consumer could apply for a one time exception on an annual basis to meet this need.

Mrs. Wanda Rolfs did not go to a microphone and stood up from her row.She asked if the council could visit the terms of the loan again.

Mrs. Crites explained that the current rate is 1.75 percent. She said in terms of rates going up, it is more of "accounting for inflation" than anything else. Mrs. Rolfs wanted to know if the sewer bill will go up by a dollar.

Alderwoman Bauer said the council had discussion at the end of the Budget Workshop on Thursday, March 19. She said a lot is still on the table to eliminate increases or offset them. She said people will need to be mindful and adjust their water usage. She said people will make adjustments. and that the council will need to build in the strong potential that people will make adjustments to their usage. She said the council will have to make decisions accordingly.

Mr. Richard Moody stood up from the audience and said he would like to see a flat rate, as he has rental property. He said he has no control over how much water his tenants use. He wanted to know if he would get an additional bill on extra usage.

Alderman Welch said he is personally in favor of a flat rate as well, as it takes away some concerns that people have … such as filling pools, watering flowers etc. He said on the flip side - a flat rate means an increased rate. He said nothing has been solidified about a tiered approach. He acknowledged that Mr. Moody runs a business and that he is trying to be mindful of businesses.

Mr. Moody explained a scenario that he personally encountered with a former tenant. He asked how the city could set a variable rate for consumption such as this. Mr. Moody said the council is passing the responsibility of the tenants' water usage onto landlords. He said rent has to be set on a base cost and if his costs keeps escalating, he does not know how he will set his rate. Mr. Moody is asking for a base rate no matter what it is, so he can plan his business on a base rate.

Mr. Dwayne Petty wanted to know why the city is supplementing a commercial break. He wanted to know why the city is giving 2,000 gallons of water away. Alderwoman Bauer asked Mrs. Crites to address his question and clarify. She said there is only 600 commercial accounts and 6,000 residential accounts in the City of Lincoln. Mrs. Crites said originally they intended to do a 50-50 split, but soon realized the largest consumers would have much higher bills. If these high consumption users were to leave Lincoln, (because of high water bill) - the costs would end up falling on Lincoln residents anyway. Mrs. Crites said they worked to make it as equitable as possible.

Waste Water and Treatment Manager Tim Ferguson addressed Mr. Petty similarly.

Mr. Ray Nobbe asked a question about the interest rate of 1.75 percent. He asked if there is a cap at any time. Mrs. Crites said this is a fixed rate once the city gets it. She said the project needs to get designed, permitted by the contractors, and then the rates will be locked in. Mr. Ferguson also shared why the loan is closed. Alderman Welch said the base rate and the ordinance needs to be passed prior to locking in the city's rate. He said the longer the city sits on this, the longer the costs/rates go up.

Mrs. Rolfs chimed in again. She asked why the city and all communities in Illinois are doing this. Mr. Ferguson said the simple answer is, that this is a state and federal guideline. He said this has to do with combined sewer overflow. He said cities can only have an average of four overflows in a year. He said the Union Street Pump Station is an update to an aging lift station in the community. He said other parts of the project include other improvements at the Wastewater Treatment Facility in Lincoln.

Mrs. Rolfs asked if the city had just paid off a bond that was for improvements. Treasurer Chuck Conze said the city had an IEPA loan that was for 20 years, at three percent. He said the city refinanced this through issuing bonds in 2014,for 10 years. He said the bond will be paid off in late 2023 or 2024. He also shared the amount that it is. He said over the term of the bond the city should save around $87,000.

Mrs. Rolfs said knowing what this project is about. has the city ever looked into changing infrastructure? Treasurer Conzo said that would depend on the council. He said it would depend on the amount and the term of the financing. He said it is hard to talk about it in detail, as it is a hypothetical scenario.

Mrs. Rolfs wanted to know how the city pays for "these." Treasurer Conzo said this is usually paid by taxes that go into the General Revenue Funds such as the Utility Tax and Telecommunications Tax. Alternative Revenue is not a tax levy. Mrs. Rolfs said thank you.

Mr. Moody stood once more in the back of the auditorium and asked about people who pay their sewer bills in advance. Alderman Welch said there is a current ordinance in place, that if you pay your bill a year in advance. He said the intention should be to honor the payments in advance under a year of service until a new ordinance is passed.

Mr. Moody asked about the federal act that was passed in 1994. He said the city is still kicking the can down the road.

Mr. Ferguson said the IEPA did not make the city do anything until 2013. Mr. Moody pointed out that this was still five years ago. Mr. Ferguson said this has been a five year plan. He said in the summer of 2015 - the plan was submitted to the EPA, he said it took over 12 months for the agency to approve it. He said in October 2016 their schedule was modified. He said the implementation of the CSO control policy was not done feverishly around the country. He said Lincoln was low on the list for this.

Someone who did not state their name, asked if the City of Lincoln is going to get better quality water now. The woman said you have to clean appliances all the time, you cannot drink rt. Mr. Ferguson said she is referring an issue that falls under the scope of Illinois American Water.

She said it sucks to be us, referring to the poor people in Lincoln. She said people on fixed incomes cannot afford this. She told the councilmembers to eat it. She said it aggravates her to death. She then shifted and wanted to know what the city is doing with the extra month from the garbage bins from up town. Treasurer Conze said the city has had some increases in costs, and that the State of lllinois now holds a greater portion of the state income tax. He said the city has had to make some other expenditures and that will help offset those. The same woman said taxes are going up..where are you supposed to pull it - out your ass? Treasurer Conze said the budget will be voted on in April. She said she does not think the city needs to be planting flowers. She said we need to cut, sorry.Treasurer Conze said he does not think the city is planting flowers this year.

Alderman Hoefle took the microphone on stage. He mentioned that recently the city explored electrical aggregation. He said Ameren Illinois charges consumers for rates that they refer to as a default rate. Alderman Hoefle said lower electric rates are coming to the City of Lincoln and that consumers will save $10 per month on their electrical usage in the near future. He said this is a two year deal based going forward … and the city gets nothing on it. The deal was made strictly for the benefit of the citizens.

Alderman Hoefle said this is not a fun place to be. He said a lot of the council members have been on the council for less than five years. He said he personally is going to try to see if the bill is monthly so it can be worked on, on a monthly basis. He also wants to see people restrict or limit their usage if at all possible. He said the city is trying its best right now. He said he is sorry to say, but he does not think it is going to be cheap.

Mr. John Sutton stood up and said he is on a fixed income. He wanted to know where CMT came up with 4,000 gallons as the average rate consumed, as last month he used around 800 gallons in his own home. Alderman Welch said this is just the average monthly usage in the community. Mr. Sutton said he thought it was 1,400 gallons.

Mrs. Crites said it is merely a number. She said you use what you use. It is based on an average used in a given year. He said the flat rate ls going up too. She said, yes - the flat rate is going up. Mr. Sutton said - there are exceptions. He brought up the garbage pickup too.

Mr. Wood spoke one more. He said his highest usage is 15 units a month. He wanted to know if there is any consideration for low water usage customers.

Alderwoman Bauer said in reality the shift of base rate is impacting Mr. Wood the same way as it is affecting her - but that she would pay more for anything above 4,000. Alderwoman said if you decrease your water usage, you would now decrease your sewer rate. She mentioned the need to keep the commercial rates under control in order to keep businesses In the city. She said she is going to see her sewer rates go up for sure. She said she understands, as this is going to impact her house.

Alderwoman Bauer asked if this helped. Mr. Wood said thank you.

Mr. Moody told her not to put her problem off on "us" - the residents. Again he said this is her problem.

Mrs. Rolfs said hypothetically speaking, if the base rate is $24 and then goes to $35 - that is a difference of $11. She wanted to know if that $11 would go toward paying this loan. Alderman Welch said, yes, a part of it. She asked at the end of 20 years - does this sunset? Mr. Ferguson said you alluded to this earlier. He said he would imagine that by the time this project is funded and paid for - there will be another project that comes up that the city will have to pay for. He said there is no set time that this will be in place. He said that is the intent right now, the rate structure is not something that is permanently set in place.The rate structure will be looked at continually.

Alderman Parrott asked if there were any more questions. Alderwoman Bauer said if anyone wanted to reach out to the council, their contact information is up on the city website and that there is a City Council of the Whole meeting tomorrow, Tuesday, March 27, 2018. She said feel free to contact them if anything comes up.

Another member of the audience spoke up and shared that she is a tenant and there is a sewer problem on her block. She said it will be very expensive. Mr. Ferguson shared a current project that is scheduled to address some upgrades to the treatment plant - the changes will impact wet weather.

Adjournment:

There being no further discussion to come before the City Council of Lincoln, the hearing adjourned at 6:59 p.m.

Upcoming Meetings:

Committee of the Whole / Tuesday, March 27, 2018 at 7 p.m. Regular City Council I Monday, April 2, 2018 at 7 p.m.

Committee of the Whole / Tuesday, April 10, 2018 at 7 p.m. Regular City Council I Monday, April 16, 2018 at 7 p.m.

Respectfully Submitted By:

Alex Williams, Recording Secretary

https://www.lincolnil.gov/index.php?option=com_content&view=article&id=887:march-26-2018-public-hearing-sewer&catid=50&Itemid=82