Water Rate Study

At the March 1, 2022 Village Board meeting, the Board of Trustees approved and adopted a ten-year Water Rate Study and amended the Annual Fee Resolution. As a result, the Village will be implementing water rate increases over the next three years. Discussions were held at the February 1, 2022 and February 15, 2022 Committee of the Whole meeting where staff presented options to the Village Board for their consideration. The purpose of the Water Rate Study was to evaluate the operational and capital costs of the Village's Water and Sewer Fund over the next ten years. During the execution of the Transmission Main Construction Contract in 2016, the Village Board directed that water rates be frozen until Fiscal Year 2023, which began on May 1, 2022. With the upcoming water main and lead service line replacement programs, the rate study was conducted and implemented to prevent a shortfall in the Water Fund balance. 

As part of the rate study, the Village Board also approved the creation of a multi-family class of billing for multi-family homes with 50 or more units. Accounts in this class will have larger meter and capital improvements fees so that in a 62 unit building, each unit is being charged a proportional set of fixed fees as a single family home. The Village Board selected the option with a 3% inflation factor while maintaining the existing fund balance. As a result, the annual increase to the rate totaled 2.8% per year. This equates to a $0.09 reduction to the average bill in 2023, and a $0.21 reduction to the average bill in 2031.

Additional questions may be directed to the Finance Department at 847-673-1540.