Still Waiting for a Plan

The City has begun some improvements to the water and sewer systems.  Smoke testing of the sewers has been done and further analysis is scheduled.  Cora Street is under construction and other improvements have been begun.  What has not happened however is a plan has not been presented.  Over a year after our water and sewer rates were increased, there is still no detailed Capital Improvements Plan for the water and sewer system improvements.

This plan should include lists of projects to be completed each year for the next 10 to 20 years, both new infrastructure as well as major improvements to existing infrastructure.  Also the source of funding for these projects should be identified for each year.  This type of plan allows the city to balance its expected revenue against its expected needs and then plan the work over a longer time frame.  Major maintenance items are budgeted for so that they are not surprise costs when things break down from age and potential shortfalls are known about years in advance.   

Most cities have these types of plans for all capital spending, such as roads, buildings, water systems, storm and sanitary sewers, and even vehicles. They are valuable tools for ensuring the long term financial health of a city and the most efficient use of city funds through planning.  I do not expect that Crest Hill implement Capital Improvement Plans for all aspects of the city immediately, although it would be a good thing and should have been in place already.  I do feel though that after putting in place steep rate increases on top of automatic annual increases, that exceed inflation, they should have such a plan for the water and sewer systems.  Continuing to use pay-as-you-go does not serve the best interests of the citizens of Crest Hill.  

We deserve better, we deserve well planned improvements to bring our water and sewer systems, we deserve to have our money used wisely and efficiently.  I just want to know when we will get what we deserve.  I want a plan that is more than just raising our rates.  I want a plan that is fixing our problems and letting everyone know what our money is being used for.  

Citizen Action

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.

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.