Geneseo City Council Approves Utility Rate Increases, Reviews 2027 Budget and Advances Infrastructure Projects

The Geneseo City Council approved changes to municipal water, sewer and electric rates, authorized a downtown façade improvement grant, and approved an agreement for approximately $8 million in state roadway improvements during its latest meeting.

Council members also reviewed the proposed 2027 budget and received updates on several major infrastructure projects, including the pedestrian bridge, Ford Road sanitary improvements, and the city's wind turbines.

Council Approves Water, Sewer and Electric Rate Changes

The council unanimously approved Ordinance O-26-15, updating the city's schedule of water, sewer, and electric rates following an earlier presentation outlining long-term infrastructure needs and financial projections.

Much of the discussion focused on the financial pressures facing the city's water and wastewater systems, particularly regulatory requirements, infrastructure replacement, and the need to maintain adequate reserves.

Mayor Sean Johnson emphasized that many of the expenses are tied to requirements beyond the city's discretion.

“I think specifically when you look at water and sewer, I mean, the driving factor behind that increase are programs or mandates that have been thrust upon us, that we have to remain compliant to,” Major Johnson said. “I'm not sure what the answer to that is.”

City attorney Derke Price of Ancel Glink explained that state law requires the water utility to generate sufficient revenue to cover its costs, including applicable debt obligations.

“The rate must be sufficient to cover all of the costs, including all the debt service,” Price said.

Council member Brett Barnhart emphasized that the city cannot simply redirect money from unrelated departments to cover water utility expenses.

“I think that's an important distinction that it's not like we can say we're gonna cut police costs to help pay for water,” Barnhart said. “We can't, it's not a pool.”

Officials also discussed adjustments to commercial water rates, explaining that higher-volume users would bear a greater share of system costs to help reduce the impact on residential customers.

Council Members Express Concerns About Affordability

Despite ultimately approving the increases, several council members expressed frustration about the timing and potential impact on households.

“I have a big problem with this rate increase,” council member Paula Simosky said during discussion.

Mayor Johnson responded, “Well, I think we all do.”

“I just don't think the timing could be any worse for what everyone's going through,” Simosky continued.

Barnhart acknowledged those concerns but emphasized the consequences of postponing necessary infrastructure investment.

“We are truly trying to protect our future, and it's awfully easy to say, you know, “cut cost, cut cost, cut cost,” but then we'll be back into a hole someday where we're suddenly in trouble,” Barnhart said.

Council members also discussed the capital infrastructure charge established in 2023, which appears as a separate line item on utility bills.

Officials explained that the charge supports ongoing infrastructure improvements, while broader rate adjustments account for additional system needs and long-term investments.

Johnson stressed that the proposed expenditures are tied to necessary work rather than optional improvements.

“There's not luxury things in here,” he said.

He also connected infrastructure investments to the city's ongoing efforts to address water quality concerns, including dead-end water mains and portions of the distribution system that are not properly looped.

“I don't know what the answer is, none of us do, and I just hate to have to do this,” Simosky said.

The ordinance passed with all recorded votes in favor.

City Clarifies Street Lighting Rate Adjustment

City officials also addressed public discussion surrounding a reported 133% increase associated with the municipal street lighting rate.

Officials explained that the adjustment concerns internal accounting for city-owned, unmetered streetlights rather than a separate charge imposed on individual residential or commercial utility customers.

According to figures presented during the meeting, the city's net street lighting expense was approximately $34,656 in 2025, compared with approximately $14,000 in 2026.

The adjustment would increase the annual expense to approximately $18,624, roughly $4,700 more than in 2026 but substantially below the 2025 amount. Officials explained that street lighting expenses are funded through motor fuel tax revenues.

Proposed 2027 Budget Presented

Geneseo's finance director presented the proposed 2027 budget, which was described as nearly balanced. Revenue projections were based on 10 years of historical data, with adjustments to support police pensions, emergency services and street improvements. The proposal also accounts for rising insurance, fuel and personnel costs, along with planned improvements to parks, utilities and city facilities.

A significant component involves the potential expansion of J.F. Edwards. Approximately $1 million in initial infrastructure work is underway along Ford Road, while a second phase of sanitary sewer improvements is budgeted in anticipation of the company's possible expansion in early 2027. The city would initially fund the improvements, with costs expected to be recovered over the life of the 23-year TIF district, which was specifically established to assist in covering these upfront construction expenses with completing sanitary infrastructure improvements.

Other proposed projects include south water tower maintenance, water and sewer system upgrades, drainage improvements and downtown redevelopment commitments.

Council member Paula Simosky questioned a $675,000 expenditure related to phase #2 sanitary project expenses on Chicago Street, and its potential impact on reserves. The finance director explained that available revenue, including savings from a retired bond obligation, would help offset the expense.

The budget remains a proposal and was not formally adopted during the presentation.

Downtown Façade Grant Approved for Former Rexall Building

The council unanimously approved a reimbursement grant of up to $10,000 for improvements to the former Rexall Drugstore building at 201 and 205 N. State Street.

Property owner Wayne Peterson has proposed replacing upper-floor windows as part of broader renovations to the building. The window replacement project is estimated to cost approximately $25,000. The city's downtown façade grant program provides 50% reimbursement for eligible expenses, up to a maximum of $10,000, funded through the Downtown TIF.

During public comments, officials also confirmed that Game Bois has relocated from North Russell Street into space at the property. The business reportedly held a soft opening around State Street Market, with additional signage still anticipated.

A resident also raised concerns about exterior lighting along the building that has reportedly been nonfunctional for several years, suggesting restoration or replacement to improve the appearance of the block.

Council Approves Agreement for $8 Million in State-Funded Road Improvements

The council unanimously approved an agreement with the Illinois Department of Transportation for approximately $8 million in roadway improvements along state routes through Geneseo. The city's share is approximately $134,637.

The project includes roadway resurfacing, ADA-compliant sidewalk connections, traffic signal accessibility improvements and utility relocations.

The city is also coordinating improvements to the parking area along the south side of City Park as part of the work. During discussion, officials clarified that the project does not include installation of a new traffic signal at Henry and Main Streets.

Pedestrian Bridge Receives State Permit Approval

City engineering staff reported that the proposed pedestrian bridge project has received permit approval from the Illinois Department of Natural Resources.

The city has also submitted an application through the Illinois Transportation Enhancement Program. Grant awards are expected to be announced in April 2027.

City officials explained that the grant operates on a reimbursement basis, requiring the city to initially cover eligible project expenses before receiving reimbursement.

Funding has been included in the city's financial planning for the project. If awarded, the grant could cover nearly the entire eligible project cost, according to officials. The Geneseo Foundation has re-affirmed their commitment to a $125,000 grant towards the project, if the Council moves forward with construction in 2027. The project will return to the council for further consideration regardless of whether grant funding is awarded.

Water Quality Concerns Raised During Council Comments

Barnhart raised concerns about complaints involving discolored water circulating on social media.

He questioned whether the city could prioritize residents reporting water quality problems as it plans future infrastructure and lead service line replacement work. He also suggested that additional public education could help residents understand the potential causes of brown or cloudy water.

During the later utility rate discussion, Mayor Johnson referenced ongoing efforts to improve water distribution infrastructure, including addressing dead-end water mains and improving connections within the system.

Officials acknowledged that significant additional investment will be needed to address aging infrastructure over the long term. No specific new program or action was approved in response to Barnhart's comments.

Former Hardee's Property Sale Confirmed

Council member Craig Arnold requested an update on the former Hardee's property after residents questioned why a for-sale sign remained on the site.

City officials confirmed that the property sale had closed approximately two to three weeks before the meeting. Officials said preliminary conversations had taken place with the developer and franchisee, with additional discussions expected. Based on those early conversations, the anticipated opening of the proposed restaurant businesses would likely occur in summer 2027.

No specific opening date was confirmed.

Additional City Project Updates

City staff provided updates on several ongoing projects.

Well No. 33: The city continues to await a permit from the Illinois Environmental Protection Agency.

Ford Road Sanitary Project: Work is expected to begin October 19, with structures scheduled for delivery.

State Street Project: Final quantities and material certifications are being reviewed before final payment and project closeout.

Unit 2 Generator Overhaul: The city has postponed the overhaul because costs have increased substantially beyond the original budget. Officials also cited restrictions related to taking generating capacity out of service. The unit remains operational, and the overhaul is now being considered for 2028.

Wind Turbines: The city continues to await a determination on an insurance claim related to a generator failure on turbine #2. Officials are coordinating with engineering and energy representatives and expect to bring wind turbine matters before the next Committee of the Whole meeting.

Power Plant Tuckpointing: Masonry repairs are planned for the power plant building, portions of which date to 1933. Work is expected to begin in late November. Approximately $50,000 was budgeted, with an estimated project cost of roughly $22,000.

Chestnut Street Utility Poles: Eight replacement poles have been installed, with nine remaining. Crews have begun transferring equipment to the new poles.

Electric Planning Study: A preliminary draft is expected in early November, with the final study anticipated in December.

Cemetery Improvements: Work is expected to begin on a new roadway serving additional cemetery sections.

Railroad Track Area: Asphalt work was tentatively scheduled for October 19, pending confirmation from the contractor.

Police Shooting Range: Fencing has been completed, and a brick façade has been installed on the range building. Additional police vehicle equipment work is also underway.

New Rules for E-Bikes and Scooters Approved

The council approved Ordinance O-26-14, amending Chapter 36, Article 6 of the city's Code of Ordinances governing personal transportation devices. The changes are intended to align Geneseo's regulations with updated Illinois requirements taking effect January 1, 2027.

Officials explained that the changes affect electric bicycles, electric scooters, and other powered transportation devices, including minimum age requirements for certain categories.

During discussion, officials referenced a minimum age of 15 for certain lower-powered devices. The city plans to coordinate public education with the Police Department before the changes take effect.

During public comments, the definition of a “toy vehicle” was described as a battery-powered ride-on toy designed for children under age 8, with a maximum design speed of 10 mph.

Community Announcements

The Chamber of Commerce reported successful fall events, with State Street Market vendors reportedly experiencing record sales activity.

The city also announced the remaining fall yard waste disposal dates at the Roos Hill Road site. The site will be open from 8 a.m. to noon on October 24, November 7, November 21, and December 5.

Geneseo's official Halloween trick-or-treating hours are Saturday, October 31, from 4 to 7 p.m.

The council also approved the treasurer's report, capital asset reports, previous meeting minutes, and payment of city and utility bills.