Daily Archives: October 24, 2008

City Council, City of Peoria, Illinois American Water

Water company buyout on agenda for Tuesday

12 Comments

As my letter from Illinois American Water indicated, the council will be taking up the matter of whether to buy the water company at their Oct. 28 meeting.

Included in the council communication are (1) the March 1, 2005, letter of appraisal that set the value/purchase price of the Illinois American Water Peoria District at $220,000,000, and (2) the City’s Water Company Acquisition Financial Analysis. The financial analysis estimated that 2006 revenues would have been $29,360,000, based on actual revenue information acquired through the due-diligence process at that time. It also estimated that an operations contract to manage the water company would cost about $11,000,000 in 2006, increasing 3% each subsequent year.

The analysis showed that the water company would pay for itself — i.e., taxes would not have to be raised to cover the debt service — and water rate increases would only be 3% per year. Under this scenario, sufficient funds would be set aside for capital improvements as well.

Of course, things have changed since 2005. A new analysis would have to be done, as well as a new appraisal. According to the council communication, due diligence could cost as much as $2 million, and the city could find that it now can’t afford the water company when all is said and done.

Mayor Ardis is quoted in the paper today as saying, “To me, it will be very difficult to justify spending $2 million to do due diligence on this under the current budget constraints…. I don’t think that is a priority.” Ardis voted against the buyout last time, also.

Also of interest in the Journal Star’s article are some preliminary numbers from Illinois American Water Company’s telephone poll:

Company spokeswoman Karen Cotton said the research shows that of 400 registered voters in Peoria who were polled, 55 percent strongly opposed a city-backed buyout of the waterworks, while 89 percent believe City Hall has higher priorities.

In a 2005 referendum, 82% of voters were opposed to the water company buyout. Depending on how many were “somewhat opposed,” we may find that opposition is softening.

City Council, City of Peoria

Council to look at raising their salary

15 Comments

The council next Tuesday will consider raising the salaries of the mayor, district and at-large council members, city clerk, and city treasurer positions. I can’t actually say “raising their own salaries,” because the new salaries won’t take effect until after the next election. In other words, if they pass this increase, they’ll only get the raise if they get reelected.

Here are the proposed salaries and car allowances:

Position Salary Car Allowance
Mayor $32,400 $475/month
District Councilman $14,000 $400/month
At-Large Councilman $14,000 $400/month

The City Clerk and City Treasurer salaries are the same, and would increase by 5% each year as follows:

Period Annual Salary
May 5, 2009 to May 4, 2010 $94,264.80
May 5, 2010 to May 4, 2011 $98,978.04
May 5, 2011 to May 4, 2012 $103,926.94
May 5, 2012 to May 4, 2013 $109,123.29

It’s funny — in a private company, salaries are something that is kept secret among the staff. And generally, most people don’t disclose their salary to others. But if you work for the city or some other public body, your salary is public knowledge. Everybody knows. Your co-workers, your friends, your neighbors. They all know what you make. That has to feel a bit awkward at times.