Water Rate Study

The Village’s Water and Sewer Fund is an enterprise fund, so its operations are financed and operated like a private business. The costs of the services provided are funded primarily from user fees, and those user fees should be sufficient to fund the utility’s operating, debt and capital expenses. Notably, Village tax dollars are not used to pay costs associated with water and sewer services.

In December 2024, the Village contracted with Raftelis to conduct a water rate study. The scope of the study included analysis of Village water rates to ensure adequate funds for maintenance and improvements over the next ten years. Raftelis made an initial presentation to the Village Board on August 19, 2025. Village Board discussion occurred at the September 30 and October 20 budget workshops. Based on direction received, Raftelis made a final presentation on November 4. The Village Board adopted the water rate study on November 18, 2025. Click HERE to view the full report. Click here Version OptionsWater Rate StudyHeadline to view the full report.

The water rate study identified a significant deficiency in funding annual capital requirements to maintain the water and sewer infrastructure and to address federal mandates regarding lead service line replacement. A previous seven year freeze on rates, recent annual rate adjustments lower than inflation, and significant increases in the costs for capital improvements have all contributed to the funding shortfall.

As a result, the Village has relied on long-term financing such as bonds and loans to fund the capital improvements needed in recent years. Raftelis’ analysis indicated that continuing to rely on long-term financing is not fiscally sustainable.

Based on the study results, the Village Board approved a water and sewer rate structure for 2026 that is projected to increase the fund’s annual revenue by 10%. The Village Board also directed that funds be budgeted in 2026 to conduct a study of all Water and Sewer Fund expenditures to identify potential savings opportunities. This study will assist in the development of rate adjustments that are required in future years.

Water Rate Structure Changes

For 2026, the Village will simplify the water rate structure and move to bi-monthly billing for residential customers to mitigate the impact of the water rate adjustment, improve timeliness in identifying leaks, and allow for improved financial planning for customers. The new rate structure will move from five separate charges on the water bill to three total charges. The 2026 Rate Structure is shown below on a monthly basis:

Please note that commercial accounts will remain on monthly billings.

The Water System Fee will be a fixed monthly fee, while the Water Usage Charge and the Sewer Usage Charge will be based on water consumption in the billing period.

Raftelis projects that the new water rates will impact low usage residential customers by approximately $6 per month and average usage residential customers by approximately $9 per month.

The Village will be transitioning the new rate structure and billing frequency during the months of February and March, 2026. Residential customers will receive a bill insert in their first bi-monthly bill explaining the changes.