The situation with water rates has motivated local residents to get active and be heard. Not only are they making their voices heard on the issue of astronomically higher water and sewer rates, but they have also brought the issue of water quality to light. People are posting on the internet, going door-to-door talking to neighbors, compiling surveys, and packing city council work sessions. This is democracy in action and I hope to see it continue until these issues are resolved and beyond that until Crest Hill once again is run for and by the citizens. This city is not going to get better overnight, but it can get much better.
I am curious though as to how Mayor Churnovic next plans to stifle citizen involvement. I am looking forward to seeing quite a crowd at the next City Council meeting. Of course, I am willing to bet that they will not even consider moving it to a location with adequate parking and seating. That would allow the citizens to observe and participate in the meeting and we can be sure that Mayor Churnovic and certain others on the council do not want to allow that to happen.
Showing posts with label rates. Show all posts
Showing posts with label rates. Show all posts
Wednesday, August 29, 2007
Wednesday, June 27, 2007
Utility Rates To Skyrocket
Crest Hill is set to raise water and sewer rates substantially. Overall revenue will increase by over 50%.
I recognize that Crest Hill's rates are currently very low and do not oppose raising rates if necessary. However, the city has not done an actual rate study. They merely projected how much they would take in if rates were raised and called that a rate study.
A real rate study would look at capital structure, operation costs, depreciation, and rate of return on the money that has been invested into the city utilities over the years. Other cities run their utilities as efficient businesses, but Crest Hill refuses to. They prefer to just raise rates arbitrarily. Instead, of creating a multi-year capital plan, they are just going to collect a lot of money and then spend it.
The State of Illinois would not allow an investor owned utility to raise rates without a formal rate study and would not allow it to operate under the logic of spend money and then raise rates randomly when more money is needed. It is time for the city to begin running the water and sewer utilities as businesses and begin to focus on efficiency can controlling costs.
I recognize that Crest Hill's rates are currently very low and do not oppose raising rates if necessary. However, the city has not done an actual rate study. They merely projected how much they would take in if rates were raised and called that a rate study.
A real rate study would look at capital structure, operation costs, depreciation, and rate of return on the money that has been invested into the city utilities over the years. Other cities run their utilities as efficient businesses, but Crest Hill refuses to. They prefer to just raise rates arbitrarily. Instead, of creating a multi-year capital plan, they are just going to collect a lot of money and then spend it.
The State of Illinois would not allow an investor owned utility to raise rates without a formal rate study and would not allow it to operate under the logic of spend money and then raise rates randomly when more money is needed. It is time for the city to begin running the water and sewer utilities as businesses and begin to focus on efficiency can controlling costs.
Subscribe to:
Posts (Atom)
