Peoria approves $109 million sewer overflow remediation district, launches Land Bank program
PEORIA, ARIZONA — May 11, 2021

Peoria approves $109 million sewer overflow remediation district, launches Land Bank program

Peoria City Council approved major infrastructure funding mechanisms including Combined Sewer Overflow remediation district ($109M over 18 years) and established land bank program to address vacant properties, while also passing utility shutoff moratorium resolution and addressing rising gun violence concerns.


Peoria Council Approves $109M CSO Remediation Plan and Establishes Land Bank Program to Combat Blight and Homelessness

On the evening of May 11, 2021, Peoria City Council convened with a newly seated roster of council members and tackled three major items that will reshape city infrastructure and social-safety spending: a $109 million Combined Sewer Overflow remediation district, the establishment of a Land Bank to address vacant and abandoned properties, and a resolution urging Governor J.B. Pritzker to reinstate a utility shutoff moratorium to protect vulnerable residents during the pandemic transition. The votes split largely along compassion-versus-cost lines, with Councilman John Kelly dissenting on both the utility moratorium and Land Bank, while Councilman Denis Cyr broke with his colleagues on the CSO fee structure.

Key Speeches

"We have to apply for a grant or for a loan through the Illinois EPA—a low-interest loan that is cheaper than if we were to go out on the street and borrow money from a bond house. If we went out and sold bonds and issued bonds, that would be four percent interest or three and a half percent interest. The loans are going to come in at one and a half percent interest." — City Manager, on CSO financing urgency

"In 1972, under President Nixon, the Clean Water Act was passed over his veto in both the house and the senate, and the purpose of that Clean Water Act was to clean up surface water such as our own Illinois River. Finally the consent decree was entered into in December of 2020. What we have here is really a plan that costs about half as much as what the EPA originally wanted to impose on us. Originally we were talking close to a quarter of a billion dollars in remediation work." — Councilman Graham, defending the CSO compromise

"The moratorium if we can get—if we can urge the governor to sign the moratorium again—it's not going to cover everything, but it will help us right now, and it will save lives and it will reduce the pandemic spread." — Lawrence Michard, ACLU advocate and public commenter on utility shutoff moratorium

"I think that a greater amount of debt for them today is not the answer. I'm going to be very reluctantly voting against this because I do like the programs we have to help these people, but instead of getting help or encouraging them not to, and just pile on more debt that they cannot service, I just don't think this is the way to go." — Councilman John Kelly, on utility shutoff moratorium

"We are worrying about maintaining our basic needs and maintaining your utilities is a basic need. And so if it came down to me thinking about my FICO score or me keeping an air conditioner for my kids this summer, you know, water, electricity—I'm gonna worry about that." — Councilman Dr. Andre Dr. Andre W. Allen, supporting the utility moratorium

Timeline

Utility Shutoff Moratorium Resolution (Item 21-129)

Land Bank Ordinance Establishment (Item 21-110)

Combined Sewer Overflow Remediation District (Items 21-039a and 21-039b)

Opposition

Utility Shutoff Moratorium Opposition:

Land Bank Opposition:

CSO Remediation Funding Opposition:

Support

Utility Shutoff Moratorium Support:

Land Bank Support:

CSO Remediation Support:

Project Details

Combined Sewer Overflow Remediation District

Land Bank Program

Vote Breakdown

Utility Shutoff Moratorium Resolution (Item 21-129)

Land Bank Ordinance (Item 21-110)

CSO Remediation District Ordinance (Item 21-039a)

CSO Remediation District Fee Resolution (Item 21-039b)

Deferral Motion on CSO Remediation (prior to ordinance vote)

Outcome & Next Steps

Utility Shutoff Moratorium: The resolution was approved and will be transmitted to Governor Pritzker requesting reinstatement of the utility shutoff moratorium until herd immunity is achieved and federal funds (HB 2877, estimated $1.4 billion) are appropriated. The city is coordinating with nonprofit partners (Heart of Illinois Continuum of Care, PCCO, Salvation Army, Prairie State Legal Services) to ensure residents are informed of available programs. Residents should call 2–1–1 for navigation to utility assistance, rental assistance, and other relief programs. The Mayor's office and City Council will continue public outreach.

Land Bank Program: Ordinance approved. The city will apply for Attorney General grant funding (deadline pending). Once approved, the city will appoint a Land Bank Board and hire a Land Bank Manager, Community Service Inspector reassignment, and legal department staff. Board meetings will be open to the public. The Land Bank Manager and Board will conduct neighborhood outreach and develop a comprehensive vacant-property strategy for council approval. The program is temporary through fall 2022, subject to state funding. Council will revisit vacant-property management policy (last updated 9–10 years ago) with input from the board and neighborhoods.

CSO Remediation District: Ordinance and fee resolution approved. The city will submit a final loan application to the Illinois EPA next week for the 1.5% interest loan. Contracts and loan agreements will return to council for approval. The 18-year remediation schedule begins pending EPA loan approval. Annual CSO fees will be transparent and separate from sanitary/storm rates. Green-infrastructure construction (rain gardens, bioswales, etc.) will roll out over 18 years, creating union jobs and infrastructure improvements.

Controversies & Context

CSO Negotiations & Federal Compliance: The Combined Sewer Overflow issue traces to the 1980s, when the EPA identified violations of the Clean Water Act. The consent decree finalized in December 2020 represents a significant negotiation victory for Peoria: the original EPA demand approached $250 million; the negotiated requirement is $109 million over 18 years. Councilman Graham emphasized that the green-infrastructure approach (rain gardens, bioswales, permeable pavement, bioswales) is superior to the traditional engineering model (large-diameter trench) and supports local union labor. However, Denis Cyr challenged the funding methodology, noting that the stormwater utility fee collected $30 million in four years while backlog grew from $17 million to $21 million, and no alternative funding scenarios were presented to council. The manager countered that the consent decree is a federal obligation and that the 1.5% EPA loan window is closing.

Land Bank & Municipal Capacity: John Kelly argued that the city previously employed a land manager and legal staff (total cost ~$165,000) but eliminated those positions during budget cuts. He contended that the city could reinvest in existing capacity without state involvement and that establishing a new "bureaucracy" is inefficient. Assistant Director Doolin countered that the state grant funding is time-limited and that the Land Bank Board structure creates transparency and public accountability that the city's current vacant-property management lacks. However, the debate over state reliance reflects deeper skepticism about whether external funding creates lasting improvement or perpetuates dependence.

Public Input & Neighborhood Voice: The May 6 public meeting on the Land Bank revealed resident concerns about transparency and meaningful neighborhood participation. The ordinance was revised (shown in yellow text) to address these concerns: council members now come from any district (not just at-large); a second neighborhood representative was added; and real-estate and county representatives were required to reside in Denise Jackson underscored that the First District, with the largest concentration of vacant properties, must have substantive input. Councilwoman Jensen reiterated that the ordinance is a "start" and that the board, once appointed, will conduct neighborhood meetings to develop a comprehensive strategy.

Utility Shutoff Moratorium & Economic Recovery: John Kelly dissent on the utility moratorium reflects a broader philosophical divide: whether debt deferral during economic transition helps or harms vulnerable households. John Kelly cited the student-loan analogy, arguing that accumulating utility debt will burden residents long after pandemic relief. Timothy Riggenbach and Councilman Dr. Andre Dr. Andre W. Allen countered that basic utilities are necessities and that the moratorium is a stopgap pending federal relief (HB 2877). Lawrence Michard (ACLU) noted that approximately $80 million in state LEHAP funding and a proposed $1.4 billion in federal relief address past-due bills directly—not deferral—if the governor signs. The tension reflects competing priorities: immediate cash-flow relief vs. long-term debt avoidance.

Pandemic Transition & Police/Public Safety: In new business, Denis Cyr requested an update from Interim Police Chief Theobol on gun violence and crime increases. Chief Theobol reported trends consistent with regional departments: homicides, shootings, stolen vehicles, burglaries, and juvenile crime all increasing. He emphasized officers' engagement with armed individuals and noted that summer typically brings increased crime of opportunity (unlocked cars, homes). Denise Jackson reported holding a meeting at a Shell gas station on MacArthur Highway to address loitering and safety concerns; a homicide occurred at that location days after the meeting. The Mayor underscored the need for police-community partnerships and called for residents to report suspicious activity and call Crime Stoppers. This briefing, while informational, highlighted the urgency of the council's social-safety initiatives (utility moratorium, land bank) as complementary to enforcement.

Duration

Other Notable Items

Warehouse Parking Lot Resurfacing Contract (Item 21-124): Council unanimously approved a $126,895 contract with Tazewell County Asphalt Company for downtown parking-lot resurfacing at 812 Southwest Washington. Councilwoman Jensen noted this was the only bid received for the small asphalt job, required to provide 50 parking spaces as part of a redevelopment agreement.

Peoria Cares Call Management Expansion (Item 21-106): Council unanimously approved a $75,000 budget amendment to contract call management with the 2–1–1 center (United Way/AMT) for 50 hours per week at $25/hour. The shift from in-house to outsourced call handling provides access to trained dispatchers and the 2–1–1 database, improving cost-effectiveness and service quality. Councilman Graham emphasized that the current in-house system (taking calls through the manager's office) is inadequate and that this expands capacity.

Glenn and Sheridan Road Culvert Project (Item 21-127): Timothy Riggenbach requested a two-week deferral of a $479,789 contract amendment and $60,796 budget ordinance for a CSO-related stormwater project at a major intersection. The deferral was granted unanimously.

Police Crime Briefing: Interim Police Chief Theobol briefed council on rising gun violence, homicides, stolen vehicles, burglaries, and juvenile crime, noting trends consistent with regional departments. He emphasized the need for community cooperation, crime reporting, and summer crime-prevention measures (locking cars and homes). Dr. Rita Ali and Denise Jackson discussed a recent meeting held at a Shell gas station on MacArthur Highway to address loitering; a homicide occurred at that location days later, underscoring the urgency of community-police partnerships.