Your water bill is going to be $13 lower pretty soon.
Illinois American Water Company (IAWC) has informed the City of Peoria it will terminate billing services for the City’s so-called “garbage fee.” Peoria isn’t alone; IAWC’s parent company is terminating all municipal billing services in order to “focus on [its] core business,” according to a spokesman.
Of course, you’ll still have to pay that $13 per month, so the City will have to find another way to collect it. The most likely option is for the City to bill residents directly, though it’s possible the City could find another partner to pick up the billing services. City Manager Patrick Urich told the council in an e-mail, “We are working on several options for assuming the billing operations and I hope to have something to Council soon.”
Other cities are scrambling to assume billing operations, too, and it’s not a cheap alternative. Richmond (Ind.), for instance, used American Water to collect their sanitary sewer charges. Taking the operation in-house will cause the cost of collecting those fees to double, according to their city controller. Chattanooga (Tenn.), which also collected sewer fees on their water bills, charges residents an extra $3 per month now as a result of the billing being transferred to the City.
There are a few other options that could be considered by the City at this time of transition.
- Replacing fee with property tax hikeOne option (unlikely to be entertained at all by the Council) is eliminating the fee and collecting the revenue through property taxes. With a flat fee, everyone pays the same amount: $13. With a progressive tax, those with higher property values would pay more than those with lower property values.According to the 2012 City budget, the “Refuse Collection Fee” brings in $6,271,932 to City coffers. And according to Peoria County’s Tax Computation Worksheet for the City of Peoria, the City’s residential rate-setting Equalized Assessed Valuation (EAV) for 2010 (latest worksheet posted on the County’s website) is $1,324,615,014. Given those numbers, in order to collect the $6.27 million through property taxes, the tax rate would have to be raised 0.004739.That would mean the owner of a $100,000 house would pay $157.83 more on their annual tax bill. That’s only about $1.83 more than they are paying now for the garbage fee ($13/month x 12 months = $156/year). The break-even point would be approximately $98,800. Those with property values above that amount would pay more than the current $13/month garbage fee. Those with property values below that amount would pay less. The fee will also depend on Dumposaurus dumpster sizes and the waste container type.
The argument for this system is that the burden for City services is borne proportionately (and thus, more fairly) by the residents. Critics argue that higher taxes will keep people from moving into Peoria and may drive people to move out. Furthermore, they argue, everyone benefits equally from garbage collection, so everyone should pay equally for it as well.
From a billing standpoint, the County would collect this tax just like all the others through the property tax bill, so there would be no increased costs to the City for billing.
- Replacing fee with garbage stickersOther cities take a different tack regarding garbage fees: they base it not on property values or flat fees, but rather how much garbage residents throw away. In Aurora (Ill.), for instance, residents purchase garbage stickers for $2.68 each and affix one sticker to each bag or 32 gallon garbage can each week. This way, those with less garbage pay less in fees than those with more garbage. It could even be used as a way to incentivize recycling.However, since garbage without valid stickers do not get picked up, there could be unintended consequences. Garbage could pile up on the properties of negligent residents or in vacant lots as people try to get around the fees by doing illegal dumping, and that would obviously be a health hazard. It would also raise costs for the City for enforcement and cleanup.From a billing standpoint, the cost of printing, distributing, and collecting revenue raised by the stickers would have to be worked into the price of the stickers. These costs would likely be less than mailing a bill directly to each household.
- Having PDC collect the fee directlyAccording to the City, this fee is solely for garbage pickup and tote rental. If that’s the case, then a reasonable question would be, why is the City handling the billing and collection of this fee? Why not have PDC collect the fee directly and cut out the middleman? Other utilities (water, electricity, cable) direct bill for their services without going through the City, even if their rate is negotiated by the City (e.g., electricity rates were recently negotiated by a number of municipalities).This doesn’t change anything about how the fee is assessed, but it does resolve the issue of finding a new way to bill the residents for the service. It also would allow the City to completely cut out the need to collect money and pass it on to PDC.
If the “tax” is fully funding the waste service, then PDC should do direct billing. Why would the city be involved at all? If the city is once again lying about what they are doing with the Garbage tax, then perhaps they should tell people what they are really doing with our money.
You can bet that IAWC has their own agenda here. They knock off the adders so that they can increase their water rates. Don’t count on paying $13 less, count on $10. Then $7, and so on.
It would be a huge blunder to add this fee on to the property tax. Illinois is already the laughing stock of the nation in regards to real estate taxes.
The City of Morton uses the garbage sticker method. Citizens can even buy stickers at the local Kroger store. I think the idea could be looked into for the City of Peoria.
I don’t think you can buy garbage stickers with food stamps.
GPSD?
I doubt Ameren does it.
Those are the only two that most city residents would have. But does everyone in the city fall into GPSD’s map?
Can the city afford to have the garbage fee if they have to pay their own postage and collection system.
The Garbage Fee should be abolished and the property taxes raise accordingly. That way, all properties, not just residential pay the fee part of which goes to the rental ( a small amount) and the rest goes directly into the general fund of the city of Peoria. This was the dumbest idea to come across the horseshoe ever and now it is $13. It was supposed to be a temporary tax and Turner was so concerned that fixed income and poor couldn’t afford the original $6 fee. Where is his concern now? People are going to move out for a $156 yearly increase on a $100,00 home when they are paying this now via their water bills? I’ve got news for you, people are moving out now. This council cuts police and crime is out of control and they want you to sit in the middle of a taxpayer paid street and sip Irish beer. These people are idiots.
How many on the council are actively working on that campaign? and suddenly he gets a special privelege denied to other businesses. And note once again that HP “get my boss some tax dollars” golden boy pushes an economic development policy that benefits one and one one business man. No surprise there.
Clyde is quitting once he found his backbone and the majority of the council has been blocked on getting that Southdown money. Look who is running..someone who will be a yes vote on the Warehouse District at any cost…. humm anyone else smell more Chicago politics? Those same people will be backing BVA’s yes vote to the hilt.
BVA is done. West Bluff residents were burned by her in the redistrict vote and she has followed that up by not responding to constituent concerns. No way will she get back in.
I’m against the property tax suggestion unless it is just a flat fee and not based on property tax value. First vote is eliminate it, second is the stickers, which would never fly in Peoria and third to see if GPSD would collect it as Joe stated above.
Constantly feel like someone is in my pocketbook living in Peoria. Heck, gas is higher here than anywhere else around. Heck you can drive to Pekin for the .25 cents a gallon difference.
Exactly … let PDC collect their own fee fr garbage pick-up.
The COP’s response to PDC collecting the fee should be interesting.
What happens to the fee COP paid to IAWC for collecting the $13 per month (it was about $88,000 or so a year)? Will our bill be reduced?
First, GPSD shouldn’t collect the fee because they bill every 3months and that would be an additional $39 added to an already rising sewer bill. It would be a burden to fixed income people to have to pony out nearly $70 or $80 every 3 months (if their sewer bill is close to mine) Remember the big concern Turner had when the Garbage Fee was first started at $6 every 3 months or $24 on our water bills? He was worried that fixed income and low income residents would be shocked every 3 months so he recommended and got it billed once a month. IWA charged a little over $80k to do this and no, you can bet your ass the city will pocket that 80K and it will probably mean better barricades for Water Street.
I do know this. If it comes to billing for the fee, I’ll pay the rental for the tote but will not pay the fee. I would welcome legal action on this unfair non voted on tax which except for tote rentals DOES NOT GO to garbage collection. In the City of Peoria, garbage collection is a negotiated contract included in the property tax bills we all pay. Also, ask yourself where the few million went that was collected for the tote rentals when we didn’t have totes for 6 months?????
They can come and get my rental tote and then I won’t have to pay. I had purchased one three years ago to save money instead of renting it and I only use it every two weeks as I am a senior citizen. The rental one has just sat there since I received it. By doing this I should have zero to pay. Please figure out how the ones that have purchased them don’t have to pay the rental. I know quite a few who purchased them several years back.
Emtronics the fees collected from residents are utilized to cover the cost of the collection contract with PDC. Period. End of Story. You need to get over the “they are paid out of property taxes” rant. They are not. And even if they were, it’s not an issue – the net effect on the City’s bottom line is the same.
The City gets $6.3M from the fee and the City pays PDC for the service. The bigger issue I see is that the figures quoted indicate $6.3 M is collected from refuse fees and I believe original contract amount was $5M annually (starting in 2009) adjusted for inflation. To the extent that the fees received exceed the cost of providing the service, I think residents have a legitimate complaint.
I’m a major proponent of pay for service received which a fee for service does on garbage collection. The fact is that if it’s paid out of property taxes, those not receiving the collection service (commercial properties) subsidize those that do (residential properties). Which may be fair – depending upon your perception of fairness.
That is because when the city decided to dump WM and go with PDC (and yes the bid was cheaper wonder how??) the city then could say that the monies collected would cover the garbage collection contract. It is a nut shell game with our money and the original garbage fee did not cover garbage collection at all. It was to support a special police operation that was to curb crime. That has all been lost in the mix so now they just shifted the burden to the garbage fee. Paint it anyway you like Peoria Proud it is still bullshit anyway you look at it. The Garbage Fee was to be a temporary budget fix and was to go away. Up until this council started playing games shifting money around (they got caught with southside TIF money didn’t they?) garbage collection was built into the operational costs of the city of Peoria collected via property tax. What’s next? A Snow Fee to pay drivers of plows to clear snow? Same same. And, what has happened to those extra millions collected? I’ll bet one could find out while sipping a brew on Water Street.
Interesting story and comments. Emtronics is correct about the history of the garbage fee which should be a tax. Moral: no tax/fee ever goes away once enacted, despite political promises to the contrary.
What’s to be done? GPSD is probably the easiest bet now for the city, but I would favor a property tax increase if it comes to that. It’s fairer.
GPSD has no way to stop service if the fee/tax is not paid, except to put a lien on the property. And I’ll bet GPSD will not want the perception that its rates are increasing if a garbage tax is added to its bills.
Robert Lemmer dies in Tuesday afternoon Blue Lake Road crash
Two Peoria, Ill., injured; one airlifted
Robert Lemmer, 50, of Hazelhurst was killed and two others were transported for injuries suffered in a mid-afternoon accident Tuesday, Aug. 13, near the intersection of Blue Lake Road and Agawak Road in the town of Minocqua.
Two Peoria, Ill., men driving the Toyota SUV involved in the collision, were also injured. Though the severity of those injured in the SUV – Timothy D. Needham, 21, and John W. Pearl, 21, both of Peoria – is also not yet known. Needham was airlifted from the area by Spirit Air; Pearl was transported to Howard Young Medical Center for treatment.
Preliminary reports from the scene indicate a collision between a flatbed truck driven by Lemmer and an SUV, with one of the vehicles striking a utility station, cutting off electrical power and phone service for some customers.
Those at the scene said the SUV may have pulled out in front of Lemmer, a 15-year employee of Lakeland Landscaping. The truck collided with the SUV, hitting the SUV, according to one source, just in front of the passenger side door. Lemmer was operating a company truck at the time of the accident.
An investigation at the scene continued into the early evening.
Lemmer is survived by his immediate family – his wife, Jodi, and two children, Tyler and Travis.
http://www.lakelandtimes.com/main.asp?SectionID=9&SubSectionID=9&ArticleID=15794
Kelly Needham has also passed. Pray for strength for all families involved.
Thanks for an educational blog. I’ve been looking for this sort of information for a long time now.
I call the garbage fee the hotel tax since it was approved soon after the hotel project, and its purpose was to free up the city’s general fund… but they chose or wanted those funds for other things. So it does seem a shell game. IMHO the water company is smart to get out of the garbage fee collecting business considering how large that fee is proportional to the actual water bill amounts. I mean why should they make themselves a greater villain for people to hate writing checks to? (not that anyone loves paying their water bill…)
1st Emert is running and now perhaps C.J.?
Power to the people !!!!
“Karrie E. Alms
August 16, 2012 at 4:42 pm
Exactly … let PDC collect their own fee fr garbage pick-up.
The COP’s response to PDC collecting the fee should be interesting.
What happens to the fee COP paid to IAWC for collecting the $13 per month (it was about $88,000 or so a year)? Will our bill be reduced?”
Fat chance now. Vendor up for vote tonight cost way more!
Martin … ha ha …$88,000 per year is now proposed to be $124,200 plus postage and debit and credit card fees for an annual $160,000 estimate (might even be higher) than the estimate proposed for approval tonight or as times goes by even higher … don’t expect a refund … still no word as to why PDC isn’t doing its own billing and collection or what the inhouse cost would be … ka-ching!
“why PDC isn’t doing its own billing”
Why would the want the problems. they get the $$ now with 100% payments(city of Peoria). No tracking down people ,collection service,on and on. when I had a PDC cart they did not do the billing, It went to some PO box in Chicago.
The Garbage Fee is still on my water bill.