The Village Council last night approved an increase in the rates charged for water to Downers Grove residents.
We have discussed potential water rate hikes before, however last night, Council’s approval makes these rates effective starting on May 1, 2010.
“We need to keep reminding our residents that we are passing on an expense that is coming to us and we are likely going to have to pass on another expense that’s coming to us,” said Mayor Ron Sandack. ”We want to make water as transparent as possible, when it comes to costs.”
The Village Council approved the rate increase with a 6-1 vote. The dissenting vote came from Commissioner Barnett, who approached the Board with an alternative proposal for a rate increase.
Council discussed these changes at both the March 16th and April 20th Village Council meetings.
The main cost is being passed on to the DuPage Water Commission from the city of Chicago, where the DuPage Water Commission buys water from.
The cost to the Village for purchasing water from the DuPage Water Commission is set to increase by 21% from $1.72 to $2.08 per 1,000 gallons (or from $1.29 to $1.56 per 750 gallons, an increase of $0.27). This means your water bill could go up an average of $25-26 per year, based on a consumption of 6,000 gallons a month.
Based on 2009 levels of consumption for water, this will increase the cost to the Village from $3.4 million to $4.1 million. The increase in rates (at $0.27 more than current) that the Village will pay will be directly passed on to users (residents).
Commissioner Barnett wanted to raise the water rates higher to match what percentage the DuPage Water Commission is raising by, which is currently 20.9%. This would mean that the current rate the Village charges of $3.04 per 750 gallons would increase to $3.68 per 750 gallons.
The original proposal calls for a water rate increase from $3.04 per 750 gallons to $3.31 per 750 gallons, an increase of $0.27 per 750 gallons.
“Knowing that these increases will be ahead of us, I would prefer to make the adjustment right now, one time and then make another adjustment next year at the same time,” stated Commissioner Barnett. “Recent history of the DuPage Water Commission has proven that they should have been making these rate changes, but they didn’t so we didn’t feel it as badly.”
“We could pull any rate we wanted out of the air and promise to change it later,” stated Commissioner Waldack. “We’ve commissioned a study to help detemine the true costs and impact of water delivery so it is likely that after we pass this increase, that we will have to come and more than likely increase it again, although we don’t know that for sure.”
“My vote [for this agenda item] is affirmative, but I certainly see the alternative as viable,” said Mayor Sandack of Commissioner Barnett’s proposal.
The Village has been and will be coming forth with a water rate study in the next 3 months in order to determine how to set rates for the long-term to ensure the financial viability of the water fund, especially given the turmoil at the DuPage Water Commission.
We’ll talk about this as the details about the study are available to us.
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