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Public hearing on Lincoln sewerage rates draws low and fixed income, and landlord interests

[March 27, 2018]

LINCOLN

About 25 Lincoln citizens attended a public hearing hosted by the city of Lincoln on Monday evening to discuss upcoming changes in billing for sewerage.

The evening opened with an overview by project design engineers Christy Crites and Shannon Brady of Crawford, Murphy and Tilly of Springfield.

About 10 people raised questions or made comment on the proposed rate changes. Questions ranged from asking how the council came up with the proposed rates, to why it was being done now and why it hadn't been done sooner at less cost. There were also a few questions related to uncommon situations.

Tim Ferguson, who is the waste treatment plant manager for the city, explained the need for the changes stem from federal guidelines set back in 1994 to protect water quality. It requires more control over water discharged from waste water treatment plants into streams. Older sewer systems carry both storm water and sewage through the same pipes to the treatment plant. During heavy rains raw sewage combined with storm water often is dumped into streams.

Lincoln resident John Sutton questioned why the council has sat on this for so long and why the costly changes are necessary now?

Ferguson explained that in 2013 the Illinois Environmental Protection Agency gave communities five years to address the issue. Lincoln hired the engineering company Crawford, Murphy and Tilly of Springfield. It took two years to assess the system and design the Combined Sewer Overflow (CSO) Plan, which was completed in 2015. The structural plans were submitted to the IEPA and took one year before they were returned in October 2016.

The next step was to determine how to pay for it. CMT was hired to evaluate current usage figures and make recommendations on how to pay for the changes. The council has reviewed those recommendations and is now presenting the plans to the public.

Sutton persisted asking why the council has waited until now to do something when costs have continually increased since 1994 to do such work.

Alderman Rick Hoeffel explained how this was a matter the current council could not speak to as he and nearly all of the other aldermen have been on the council less than five years.

The proposed rate changes and criteria for billing is based on the amount of water used in a home or business.

Residential rate structure would have a $35 set fee based on the average usage of 4,000 gal water per month, and 50 cents per 1 unit (100 gallons) would be added to users going over 4,000 gallons.

This constitutes an $11 per month increase for the average residential user.

Alderman Michelle Bauer said the council sought to off-set cost impact [of the sewer changes] as minimally as possible to have the least impact to the most people.

She later explained that currently low water usage customers are carrying the burden for the higher usage residences. The new structure, which sets a base fee and water amount with charges for water use overage, brings more equity.

There is also some control for the higher usage residents wanting to keep their bill lower. Bauer said, "People will naturally adjust their water usage," and she illustrated that high water use households can lower their volume if they begin to observe their usages in showers, watering outdoors, how they wash laundry, etc.

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Shannon Brady of Crawford, Murphy and Tilly of Springfield explains plans for sewer upgrade and the proposed residential and commercial rate structures to cover the costs of the projects.

There was a landlord in the audience who asked how they could control their costs when the sewer bill is built into their renter contract and they have no control over how much water the renter uses.

One concern expressed came from a man who had an unanticipated water event in his home. Jim Kelly said there was a hole in a pipe that put a lot of water went into his crawl space.

Alderman Tracy Welch said the council had discussed situations such at that, and there is a proposal to put a one-time a year exemption into the ordinance.

Currently, a 20-year loan would be needed. The city must determine how to pay the additional $1.5 million per year to pay the loan. Presently the sewerage use collects $2.8 M per year to operate.

The council has reviewed options for both the residential and business rates. Commercial users would also see an increase. However, Alderwoman Bauer explained that the two rates systems needed to differ to keep it equitable for all. A tier structure was created in order that those bills would not become so astronomical that they would drive valued businesses out of the community.

No commercial users presented any questions at the hearing.

Primary costs in the plan are to complete a Union Street Pump Station and some upgrades at the Waste Water Treatment Plant.

Time is closing in to meet deadlines and not incur fines for being out of compliance. The council needs to approve an ordinance with billing rates, projects need to be bid out, and then papers can be signed for the loan. Councilmen noted that nothing gets cheaper waiting, costs of materials go up, and they would like to secure a loan at the current low interest rate of one-and-three quarters percent.

During the meeting Conzo shared how the city saved $87,000 on its Alternate Revenue Bonds when it refinanced a 20-year loan at a lower rate in 2014.

The council is also looking at other ways to off-set costs, such as through the Utility Tax.

Alderman Hoeffel and city Treasurer Chuck Conzo had some good news for residents. On Monday they learned a rate was locked-in where all Lincoln residents would see savings on their electric bills. The average use is 800 kilowatts and those residents should see $10 per month savings on their Ameren bill.

The savings comes through the new Electric Aggregation Program the city hired out. Residents are automattically in this program unless they opt out.

The gathering was held in the Johnston Center for Performing Arts on campus of Lincoln College.

[Jan Youngquist]

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