Four-person household to average $113.68 in 2017
By Dan McLeister for The Elmhurst Independent
The Elmhurst City Council approved at the December 19th meeting, recommended increases in water and sewer rates proposed by the Finance, Council Affairs and Administrative Services (FCAAS) Committee. The water rate is up 7 percent and the sewer rate is up 8.9 percent.
The Capital Investment Recovery Change (CIRC) is expected to double. For instance for a meter size up to 1 “ the number will go from $5.26 to $10.54; for a 1 1/2 “ meter the number will go from $10.51 to $21.09; for a 2” meter the rate will go from $16.81 to $33.69; for a 3” meter the number will go from $33.64 to $67.42; for a 4” meter the rate will go from $52.56 to $105.34 and for a 6 “ meter the figure will go from $105.12 to $210.68.
The CIRC was established to recover those costs that do not fluctuate with water consumption, primarily annual debt service on system capital expenditures.
The CIRC also provides what Alderman Kevin York (4th) called ‘critical revenue stability’ for the Municipal Utility Fund (MUF) in periods of higher than average rainfall, when water consumption may be lower than projected- which could negatively impact MUF revenue- and the ability to recover all debt costs if they were to be recovered solely based on water usage.
A CIRC applies to each meter in the system, regardless of quantity of water consumed. Users with larger meters that put a greater demand on the water and sewer system contribute proportionally for the debt service incurred to maintain and upgrade the water distribution and sewerage collection systems.
Alderman York, who chairs the FCAAS Committee, said the financial impact of the recommended water rate increase, sewer rate increase and CIRC increase based on debt service, is projected to by about 12.6% for an average four-person household. This amounts to an overall cost on average, of $113.68 per month for water and sewer services in fiscal year 2017 compared to $100.96 in fiscal year 2016. The rates are effective for usage billed on or after January 3, 2017.
The alderman noted that although costs are expected to generally increase over time, the rate of increase in water and sewer costs is projected to decline over the next five years due to capital improvements and efficiency.
York stated that the goal is to achieve the 25% cash balance total in the (MUF) by 2019.
The FCAAS Committee also discussed concerns with the methodology of continually using rate adjustments to fund capital projects and will begin review of an approach utilizing a more long term financing and funding strategy. There is a report currently being worked on by consultants that may help the Committee to address some of these concerns, York noted.
