Illinois American Water has significantly raised water rates in the New Year, an issue talked about at length by trustees during a recent Hanna City Village Board meeting.
Trustee Ryan Pierson brought the issue up during the January 3rd meeting after receiving information from Illinois American Water that rates would be going up across the state.
“So as it sits now, if we do nothing, we’ve got a 2.7% increase that’s going to kick in,” Pierson said during the meeting. “Initially, our thought was before today that maybe we talk about postponing that or lessening it or something just because we increased it like twice over the past year, but then we got an email from Illinois American that looks like it says it’ll be a 65% increase over last year, the pricing coming from them.”
According to Pierson, the rate increase took effect January 1, 2023. The e-mail from Illinois American Water pointed to $1.1 billion in statewide infrastructure improvements as a driving factor for the rate hike.
Based on the city’s past water usage, Pierson estimated the rate increase would translate to a $135,000 annual increase in water purchasing costs for the city or roughly $11,300 each month.
Council entertained a few options to deal with the substantial rate hike, including using the $170,000 water fund surplus to either take the brunt of the increase for residents, or use some of it and meet residents halfway with the rate increase. Trustees opted to continue discussions and tabled any decision making until the next meeting.
