Hoffman Estates' water rate may rise

Hoffman Estates officials at Wednesday's rescheduled committee meeting voted to raise the village's residential and commercial water rates for next year.

Residential customers would see a 5.2 percent increase, or a $1.70 increase in their monthly bills for the average customer. The average commercial rate would rise 5.8 percent, or by $19.41 per month. A final vote will come at Monday's board meeting.

The raise isn't much of a surprise as it comes as a result of the city of Chicago's 2008 increase for Lake Michigan water. Chicago raised the cost of water by 15 percent each for 2008 and 2009 and another 14 percent for 2010. While Mount Prospect and other towns already raised their water rates to reflect Chicago's increase, Hoffman Estates officials didn't immediately pass along the 2008 increase to residents. Instead, they waited for the results of a water rate study, which forecast water costs through 2014.

Trustees Cary Collins and Gary Pilafas voted against the raise. Collins said he preferred to defer the water-rate increase until 2011. He argued waiting would allow the economy to improve. Collins said this wasn't the time to pass along the increase to residents.

The water study showed the village's waterworks and sewage fund reserve would fall to a $6.5 million deficit by 2014 if the village didn't raise the rate. The village's goal is to keep $2 million in reserves and contingencies, which the village would retain in 2014 under the proposed increase.

Village Manager James Norris addressed what the rate pays for: the cost of water, the cost of infrastructure upkeep including electrical systems, the cost of having public works staff available to repair water main breaks and other emergencies, and finally debt service. Debt service covers items like the water tank under construction on the village's west side.

Trustee Karen Mills acknowledged every dollar saved in this climate is important, but she also echoed what Mayor William McLeod said: The water rate is based on what the consumer uses.

"We've got to maintain the system so it's there for the people," Mills said.