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The Village Board is considering two separate fee increases for the
purpose of maintaining the fiscal health of the water and sewer operation
and to support the combined sewer construction project expected to begin
later this fall. The first increase establishes a new monthly sewer
construction fee while the second adjusts the overall water and sewer user
charge. The rate and fee increases were made based on system assessments and
rate study conducted by staff. The discussion below summarizes the work done
by staff and how the fee increases were determined.
Combined Sewer Evaluation Study
The Village’s sewer system consists of a separate wastewater and storm sewer
system as well as a combined sewer system that handles both wastewater and
storm water run-off.
In December 2002, the Village Board awarded a contract to Baxter and Woodman
consulting engineers to conduct a comprehensive assessment of the Village’s
combined sewer system. The scope of the Baxter and Woodman contract included
an inventory and mapping of all sewer mains, manholes, inlets, catch basins
and other structures in the combined sewer area. In total, over 260,000
linear feet of Village-owned combined sewers were inspected. In addition,
the Village Board awarded a contract to National Power Rodding Corporation
to clean and televise all Village-owned combined sewers. The goal of the
assessment and televising was to assess the condition of the combined sewer
system and determine an estimate for repair. Results of the assessment are
as follows:
• Approximately 8% of the combined sewer system is in severe structural
condition (Category 5) and should be repaired within one to two years.
• 10% are in poor structural condition (Category 4) and should be repaired
in the next three to four years.
• 20% have moderate structural defects (Category 3) requiring work within
the next five to ten years.
• 34% have minor structural defects (Category 2) that do not require repairs
at this time, but should be periodically re-examined to assure the condition
does not worsen
• 24% are in very good condition (Category 1). No repairs are recommended.
The total cost to repair all observed defects is approximately $15,000,000.
Water and Sewer Fund Rate Study
The Water and Sewer Fund has been operating at a deficit for the past
several years as operating and capital expenditures exceeded revenues
generated by user charges. In response, a separate water rate study was
conducted to determine the appropriate level for water and sewer charges.
The study took into consideration the regular growth in operating expenses
and the additional capital needs for maintaining the water and sewer system.
On August 9, 2005, Village staff presented results of the rate study at the
Committee of the Whole meeting. Results of the study found:
• User charges on an annual basis were not sufficient to support ongoing
operations of the water and sewer system resulting in the drawing down of
fund balance.
• The regular rate adjustments made each June 1 of 4% were not sufficient to
keep up with costs
• The sewer rate was substantially below what was required to support the
sewer function causing the fee for water to partially subsidized sewer
operations
Based on the results of the combined sewer evaluation and the water rate
study, the following recommendations were made.
1) Implement a monthly sewer construction fee for all users of $5.00 to be
effective with billings after November 1.
2) Implement the proposed rate increase for the first year from the current
combined rate of $4.49 to $5.41 beginning January 1, 2006.
3) Authorize future annual water and sewer rate increase of 5% each January
1, thereafter.
The new monthly sewer construction fee will support the combined sewer
project on a pay as you go basis. The rate increase is necessary to allow
the Water and Sewer Fund to operate without continuing to draw down on fund
balance. Finally, the change in the annual adjustment of water and sewer
rates will allow rates to keep pace with costs and reduce the need for rate
spikes in the future. It is anticipated that the additional cost to the
typical homeowner as a result of these rate increases will be between $13.68
- $24.72 (bi-monthly) based on usage of 2,000 to 8,000 gallons.
For more information, please watch the
video explaining the increase. If you have any questions or comments, please contact the Finance Department
at 392-6000.
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