West Dundee water rate hike may go higher

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Updated: August 4, 2011 4:20PM

WEST DUNDEE — Residents would see an average water rate increase of $7 every two months under a proposal being considered by village board members.

Officials Monday night spent their second week discussing changes to the water and sewer rates for the next fiscal year.

Village staff and Finance Director Dave Danielson initially recommended an increase of 3.5 percent. That would have brought in an additional $52,500 for the village and translated into an average of $2.65 more per household each billing period. However, after Public Works Director Rich Babica went over what he said are much-needed maintenance issues, the board decided to take another look.

Babica and the village staff narrowed down recommended projects to servicing well No. 1, replacing the sanitary pump and lift station on Third Street, and replacing the electrical controls at the Fifth Street booster station. The estimated costs for these projects is $93,000.

As a result, the board went back to the drawing board trying to increase revenues.

“We are very reluctant to raise rates,” Village President Larry Keller said, “but everything goes up. It isn’t something we like to do. However, that is part of what a municipality does.”

One suggestion village staff made was to increase the water rate by 5 percent and raise the distribution fee to $23 from the current $20. The distribution fee is a charge for all residents, even if the service is off. Not all trustees agreed with this suggestion.

“If we go up to $3 a bill cycle, that’s a 15 percent increase,” Trustee Norm Osth said. “From my way of thinking, 15 percent will hit everybody. It’s a lot of money.”

Trustee Andy Yuscka suggested a different route. To try to make up for a shortfall in the account, which is estimated to be at a $71,810 deficit this year, and pay for the necessary maintenance projects, Yuscka suggested raising the rate by 6 percent and the distribution fee by $2.50. This option would bring in an additional $126,000 next fiscal year and raise the typical bill by $7 every two months.

Currently, the average user in West Dundee spends $75.60 every two months on water. Raising that by $7 would put West Dundee into the upper echelon of water rates in the area. Only Elgin ($97.72), East Dundee ($102.20) and Sleepy Hollow ($175.90) would have higher average bimonthly rates than West Dundee ($82.64). Some other villages, such as Huntley and Hoffman Estates, come in at $59.80 and $56.50, respectively.

“Some of these towns are a different story,” Danielson said. “West Dundee does not have a single large user to get a significant amount of revenue from. We have a lot of little accounts.”

The water account is supposed to pay for itself through the water rate fees, and raising them is the only way to do that, officials said.

“It is just like buying a car,” Keller said. “You know there is going to be some maintenance when you purchase a car, even if you leave it in your garage. The same is true with the water system.”