Water, Sewer, and Fixed Facility Fees
The Village Board sought to develop a formal funding strategy for the water and sewer utility fund that will allow needed capital improvement to occur over the next 20 years. The goal of the strategy was to develop a funding strategy with no impact to the tax levy and maintain a competitive water/sewer rate amongst other providers within the region.
In November, 2019, the Village Board approved an increase to the water and sewer rate and created a new fixed facility fee for all users. The changes will be effective January 1, 2020.
Funds from the rate increase and fixed facility fee will allow the Village to improve the water and sewer system serving your home or business.
Below is a table showing the water and sewer rates for other comparable communities in the region and where Buffalo Grove ranks amongst them.
What increases will be in place as of January 1, 2020? An 11-percent water and sewer rate increase will begin January 1, 2020. This increase will be reflected on the February, 2020 bill cycle for Cook County residents, multi-family, commercial and industrial users, and the March, 2020 bill cycle for Lake County residents. The combined water and sewer rate will increase from $6.37 per 1,000 gallons to $7.07 per 1,000 gallons in 2020; a net increase of 70-cents per 1,000 gallons.
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A fixed facility fee will be billed to all water and sewer customers as a distribution service charge, and will support infrastructure replacements and repairs. A set monthly fee of $17.39 will be billed to all single-family detached and attached homes. The fixed facility fee for multi-family, commercial, and industrial users will be higher, based on water usage.
A large portion of the Village’s water and sewer infrastructure has been in place for 50+ years, and repairs or replacements will be due over the next 5-10 years. The current (2019) rates could not adequately fund necessary improvements now and into the future.
After 2020, water and sewer rates will increase at a rate of 4-percent. The fixed facility fee will be the same for the next five (5) years.
Yes. The increase and monthly fixed facility fee will provide a sustainable funding source for maintenance and repairs, and provide for a predictable rate structure moving forward. If there were no increases, service disruptions would become more likely over time, which would cost the Village and users substantially more to maintain these services into the future.
Funds from rate increases will be used exclusively for capital improvements, such as replacement of water and sewer mains serving your home. These provide for the delivery of clean water, the removal of wastewater, and the maintenance and replacement of infrastructure for the water and sewer systems.
Much of the first generation water and sewer mains are reaching the end of their useful life and are coming due for replacement and repairs. With the increase and fixed facility fee, the Village plans to complete more than $30 million in capital improvements over the next five (5) years.
Prior to this rate increase, Buffalo Grove had one of the lowest water and sewer rates amongst other north and northwest suburban communities. With the increase, Buffalo Grove still ranks lower than most comparable communities.