NORMAL -- Residents could see a new $2.17 monthly surcharge on their AmerenIP bills and an increase in water rates in the near future.

The City Council will consider each on Monday.

The AmerenIP surcharge would cover the nearly $400,000 cost of burying uptown electrical lines.

City Manager Mark Peterson said originally that cost fell to the power company. However, when Illinois Power was reorganized into Ameren, the policy changed and the cost of burying the lines shifted to municipalities.

Peterson said the Illinois Commerce Commission allows AmerenIP to cover the cost by adding a surcharge to residents' electric bills. Normal will be the first community to take advantage of the option.

If approved by the council, the surcharge would be on bills for a year, resulting in a total payment of $26.10 per customer.

During a work session before the regular meeting, the council will continue discussions on a proposed water rate increase.

The town staff is suggesting raising fees from $3.96 per 1,000 gallons to $5.25 per 1,000 gallons beginning Oct. 1 and increasing the current $2.50 monthly maintenance fee to $3.75.

The increases are designed to fund capital projects and build a 20 percent reserve.

During a June work session, council members asked for the effect of such options set at a more gradual rate increase and a lower reserve amount. Those figures will be presented to the council for discussion Monday.

A vote will not take place until a future council meeting.

The council also has several other issues on its regular meeting agenda, including:

• Issuing a $5.9 million general obligation bond for uptown projects and changing a previously issued $10 million bond from a variable to a fixed rate.
• Amending town code to allow the use and sale of liquor on town property. The change was prompted by the uptown Marriott Hotel, which wants to have special events at the Normal Theater. It also would allow Maggie Miley's to serve liquor on a planned rear patio on a town-owned parking lot.

Power and water

What: Normal City Council work session and meeting with power and water rates on the agendas.

When: 5:30 and 7 p.m. Monday

Where: City Hall, 100 E. Phoenix Ave., Normal