MOUNT VERNON — The Mt Vernon City Council had their first reading Tuesday on an ordinance regarding an asset purchase agreement for the sale of the city’s water and sewer lines to Illinois American Water.
The total price is estimated to be around $33.5-40.3 million, and American Water will assume all responsibilities to the systems.
The company pledges to invest an additional $30 million in repairs and finishing the city’s projects, Rates will initially be increased by 4.3% and any future rate increases have to be approved by the Illinois Commerce Commission.
The contract will still give the city the ability to apply for grants, and the city will still own properties like Jaycee and Miller Lakes. All existing contracts have to be honored until they expire.
American Water will take control of the previous agreement Mt Vernon had with the RLCD and agree to a new one with the city and the RLCD when the contract expires.
The Mt Vernon City Council plans to make a Facebook page explaining the information to the general public, and the final vote will be at their meeting on March 2nd.