Water and sewer rates are set to go up in May due to a 3 percent annual increase and a 16-cent hike from Central Lake County Joint Action Water Agency. However, the rates might increase even more if officials approve an $18 million 10-year capital improvement plan proposed by Public Works Director John Heinz.
Heinz last week outlined various improvements he believes are needed at the village’s aging wastewater treatment plant, which was built more than 60 years ago. Improvements would also be made to the village’s drinking water and sanitary system, he said.
But two projects, totaling $1 million, have to be addressed as soon as possible, Heinz said: Replacing the Lake Street water main, which coincides with the reconstruction of the roadway, and relocating water lines and sewers, which would coincide with the Illinois Department of Transportation’s Route 21 widening project.
Also, if voters approve a road referendum in March, an additional $7 million worth of water improvements along the roadways would be needed, according to a village memo written by Village Administrator Kevin Bowens, Heinz and Finance Director Pat Wesolowski. The improvements would be in addition to the 10-year $18 million capital improvement project, Heinz said.
“Sooner or later, it has to be done,” said Trustee Trustee Richard Moras.
The proposed rate increases vary from one percent to two percent from year to year.
“As we need to do these things each year, we would need to raise the rate to meet the projects we would do each year,” Heinz said.
As an alternative, officials are also considering issuing two bonds–$6.6 million in 2012 and $8.6 million in 2015–to pay for the capital improvements.
Officials are turning to raising rates to pay for the projects because the water and sewer fund balance has been decreasing. The village is nearly fully developed, and connection fees that used to pay for capital improvement projects aren’t coming in any more, according to village officials.
Raising the rates would allow the village to maintain a fund balance, rather than dip into reserves, Bowens said, adding he would like to hire a consultant to evaluate the proposed rate increases and capital improvements.
