Casey Approves Utility Rate Increases, Joins Regional Land Bank Authority

Casey residents will see increases in water, sewer and electric rates following Monday’s City Council meeting, as the city works to address ongoing budget challenges in its utility departments.

The council unanimously approved Ordinance 584, which implements new water and sewer rates effective June 1, 2025. The increases follow recommendations from the Public Utility Committee aimed at keeping the departments financially stable.

“We’ve gone many years without raising these rates and have done several studies that have cost us money for these studies for previous mayors to ignore and do nothing about it,” said council member Lori Wilson, who chairs the Public Utility Committee. “Unfortunately we are at this crossroads and need to adjust accordingly.”

The electric rate increase, which still requires formal approval, would raise residential rates from 11 cents per kilowatt hour to 13.5 cents, with annual increases of 1.5% if necessary. The city will maintain its 1-cent discount for customers.

Wilson explained that surrounding communities charge significantly more for electricity. “Coles-Moultrie is 20 cents, Norris Electric is 14 cents and IMEA average is 14.4,” she said. The state average is 20-22 cents per kilowatt hour.

The utility rate adjustments come as the electric department faced deficits of approximately $500,000. “We was down how much scale five was that one was 500 and some thousand,” Mayor Mike Nichols said during budget discussions.

Despite the increases, Casey residents will still benefit from the elimination of the 48% utility tax in 2021, which saved customers about $18 per month.

In other business, the council approved joining the Central Illinois Land Bank Authority through Resolution 061625A. The $10,000 annual membership will give Casey access to tools and expertise for addressing blighted properties.

Economic Development Director Tom Daughhetee will serve as Casey’s Community Representative to the land bank. He explained that the authority provides shared enforcement services and grant opportunities that smaller communities typically cannot access independently.

“Joining the land bank gives us access to different tools we don’t currently have to tackle those issues as well as access to staff and support for going forward additional grants from IDA and other places,” Daughhetee said.

The land bank has successfully operated in Vermilion County, Champaign County, and Mattoon, focusing on property rehabilitation rather than just demolition. The membership allows Casey to withdraw after one year if the services prove ineffective.

The council also approved hiring Chuck Mason as part-time tourism assistant at $16.50 per hour for up to 20 hours per week. Mason will staff the welcome center four days a week as downtown tourism activity increases.

Council members noted significant success from the recent Crazy Casey Days event, with tourists and visitors throughout downtown. “There were tourists and people all over the place all day long,” said council member Marcy Mumford.

Mayor Nichols announced he will be absent from June 24 through July 3 for a family vacation with his grandchildren.