WATER BUYOUT: TRUE COSTS.

A Water Buyout would affect your water service, water quality and water rates.

Taxpayer debt: Debt service on purchase price in excess of $300 million
Loss of tax and permit fee revenue: Nearly $5 million per year
Loss of local non-profit donations and community partnerships
Potential doubling of cost for pipes, hydrants, chemicals and critical supplies
Decreased investment in critical water infrastructure

Loss of Illinois Commerce Commission oversight: the City could increase rates, WITHOUT public input.

Loss of a good company that wholeheartedly wants to remain in Peoria providing good union jobs to employees.

WHAT DO BUYOUT BACKERS GAIN?

A handful of individuals continue to advocate for a City takeover of the water system. Some have been at this effort for over 15 years and have spent a lot of money in the process. According to a past loan agreement between investors and the City of Peoria, the City agreed to pay investors 9% (reduced to 6.9% in 2004) interest on a $1 million loan. The terms of this loan were argued in courtrooms for years until May 2017 when the City was ordered to repay the $1 million plus interest.

Had the City acquired the system in 2005, those investors were to have a “Profit Sharing Agreement” with the City. Among other terms, the Profit Sharing Agreement included these provisions:

• To apply “post-acquisition ‘net income’ to certain pre-determined projects for a period of fifteen years.” Specifically, 37.5% of post-acquisition ‘net income’ was designated “for northwest growth corridor infrastructure.”
• To provide “payment of unspecified amounts in the future for ‘post-acquisition advisory services’.”

Source: City of Peoria v. Peoria Area Advancement Group, LLC, No. 06 MR 155, Tenth Judicial Circuit Court County of Peoria.

CEO COUNCIL 2018 “OFFER” COMPARED TO PAAG 1998 “OFFER”

POLITICS & WATER: DON’T MIX.

A forced buyout is a very long, complicated and expensive legal process that results in:

Sources: Town of Mooresville, Indiana v. Indiana American Water Company, Morgan County Superior Court, Cause No. 55DOI - 1212- PL-2729,
City of Nashua v. Pennichuck Water Works, New Hampshire Public Utilities Commission, DW 04-048, 2005 ICC Commissioners’ Award letter