The Pekin City Council has unanimously decided against selling the city’s wastewater collection and treatment system to Illinois American Water. The proposed $112 million sale, which included provisions for infrastructure improvements, was ultimately rejected due to concerns over loss of local control, potential rate increases for residents, and job security for current city employees.
Key Takeaways
- Pekin City Council voted unanimously to reject the sale of its wastewater system.
- Concerns about resident impact, including potential rate hikes and loss of local control, were primary factors.
- Public input at a recent open house largely opposed the sale.
Council’s Decision and Rationale
In a swift decision, the Pekin City Council voted to reject a resolution that would have allowed City Manager John Dossey to enter into negotiations with Illinois American Water for the purchase of the city’s wastewater collection and treatment system. Dossey had presented a detailed memo outlining both the advantages and disadvantages of the proposed $112 million sale. While the sale offered potential benefits such as paying down pension obligations and offloading responsibility for system repairs and improvements, the drawbacks proved more significant for the council.
Council members cited the loss of city control over a vital asset as a primary concern. This loss of control would have transferred the authority for future rate increases to the Illinois Commerce Commission, rather than the local council. Councilmember Dave Nutter emphasized that the unanimous "no" vote confirmed the council’s due diligence, stating that the cons of the sale clearly outweighed the pros. He also noted that an estimated $14 monthly increase in resident bills was projected after the sale.
Resident Concerns and Public Input
The decision also took into account the sentiment of Pekin residents. An open house hosted by Illinois American Water earlier in the month saw a majority of attendees express opposition to the sale. Councilmember Karen Hohimer echoed the sentiment that selling the system would mean losing a permanent asset for a one-time financial gain. Councilmember Jake Fletcher expressed skepticism, noting that Illinois American Water failed to provide requested data on rate increases in other municipalities where they had acquired similar systems, such as Alton.
Councilmember Peg Phillips stated that she listened to the opinions of residents and experts, all of whom advised against proceeding with the sale.
Moving Forward
City Manager John Dossey acknowledged Illinois American Water’s interest and professional approach to the opportunity. He stated that the council’s careful evaluation led to the conclusion that retaining local ownership of the wastewater system is in the best interest of Pekin residents. Dossey also expressed gratitude for the ongoing partnership with Illinois American Water, which currently provides the city with water services, and looks forward to maintaining a positive working relationship.
This is not the first time Illinois American Water has expressed interest in Pekin’s wastewater system, with previous attempts occurring at least twice before, including an outreach last year.
