Increase in W. Dundee water rates anticipated

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Updated: August 4, 2011 4:20PM

WEST DUNDEE — This week marked the second board meeting where village officials tackled the 2011-12 budget, and up for discussion was the water and sewer fund, an account that is expected to see a deficit this year.

The board and Finance Director Dave Danielson are expecting an increase in overall revenues — just over $100,000 to $1.91 million — if the board accepts a 3.5 percent water rate increase that Danielson recommended. But after certain maintenance requests were made by Public Works Director Rich Babica, the board will consider a steeper increase.

Should the board raise the water and sewer rate by 3.5 percent, not much will change for the average resident. According to Danielson on Monday night, the average consumer goes through 10,000 gallons of water every two months. With the current rate, plus a $20 distribution fee charged to each residential property, that household is paying $75.60. With the increased rate, that bimonthly bill would increase to $78.25.

West Dundee stands in the middle of area towns with water and sewer rates. For the same 10,000 gallons of water, West Dundee assesses a higher amount than Algonquin ($68.20), Carpentersville ($65.20) and Huntley ($59.80). But it remains below Elgin ($97.72), East Dundee ($102.20) and Sleepy Hollow ($175.90).

A 3.5 percent rate increase would bring in an additional $60,000. And an additional $45,000 would come from Sleepy Hollow residents. The neighbors to the west use part of West Dundee’s sewage system and therefore pay the higher nonresident rate.

On the expense side, one difficult issue the village sees each year deals with fixed costs. According to Babica, four major expenses from this account — electricity, treatment salt, treatment charges and debt service — are out of the village’s control. These numbers account for 60 percent of the $1.9 million in expenses budgeted for the upcoming year. But besides those fixed costs, Babica mentioned other unforeseen costs the village had to incur this year.

“Our village produced just over 267 million gallons of water,” he said. “We had 134 service calls and 12 water main breaks. It was a busy year ... .”

Babica also went over some things he recommended the village accomplish in the next two years. The estimated cost of these projects, ranging from routine maintenance issues to altering the water flow system, total more than $188,500.

As the water and sewer fund currently stands, Danielson estimates a deficit for the current year of $71,810. A portion of that deficit represents money owed to the Fox River Water Reclamation District.

Because West Dundee doesn’t have its own sewage plant, FRWRD helps provide treatment to the village, along with other surrounding communities. The village’s invoice came in at $118,000, largely above Danielson’s estimate.

“If it had not been for the rate adjustment (with FRWRD), we would have been in the black,” Danielson said.

With the rate hike, he said, the village would have the funds necessary to operate its water and sewer system. But the water and sewer fund would remain in the red.

Fund and revenue options are to be discussed again April 11. The board may finalize the budget the following week.