Water rate hike could be on tap for city residents

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Updated: August 4, 2011 4:20PM

Members of the Naperville City Council are expected to decide Tuesday night whether to raise residential water rates by almost 29 percent, in an effort to sate a nearly $9 million municipal water and wastewater utility deficit.

Homeowners who typically use 8,000 gallons per month now pay a monthly rate of $48.89, according to a city-commissioned study.

The proposed 28.8 percent rate hike, if approved, would raise that bill by $14.08 to $62.97 per month beginning in June, city documents indicated. That translates into an annual residential increase of $168.96.

Rate hikes of 3 to 4 percent are also in the offing over each of the next three fiscal years, city documents showed. All of the increases are needed to maintain current water and wastewater operations and retire the utility’s deficit of $8.6 million.

Water rates have gone up nearly 36 percent over the past three years. Members of the DuPage Water Commission on April 21 set their 2011 rate at $2.29 per 1,000 gallons, a 10 percent increase over last year.

A council memorandum stated a 2005 “Cost of Service Rate Study” made assumptions that were “heavily influenced and dependent on revenues from development and growth” in Naperville.

“In 2007, with the downturn in the economy, and four consecutive wet/cool summers, the utility experienced significant reductions in revenue,” according to the memo. That — combined with the rising water rates and despite “deep budget cuts” and significant reductions in city staff — created the deficit, the memo indicated.

“While the jump in the rates is significant, the proposed rates are competitive, and remain some of the lowest rates (in the) area when compared to the surrounding water and wastewater utilities,” the memo declared.

The increase, if approved, would make Naperville’s new rate the sixth-lowest among 14 area cities and villages and the unincorporated Steeple Run section of DuPage County.

Warrenville — which also anticipates a rate increase — has the lowest combined average monthly bill of $36.83. Bolingbrook has the highest rate of $127.77, according to the memo.