Elgin water, sewer rates to rise

Elgin's water and sewer rates likely will increase every year from 2010 to 2014, but not as much as previously thought.

Two weeks ago, city leaders held their noses when the staff presented a plan to increase rates by 9 percent each year through 2014.

Wednesday night, council members returned to the budget table to see some increases of 5 percent and 7 percent for the water and sewer rates. Still, several years had a 9 percent hike, which is to pay for water treatment plant expansions and infrastructure improvements.

So if the increases hold true, the final rate in 2014 will be about 7 percent less than if the council went with the plan floated two weeks ago.

The water and sewer rate to start 2010 would be $4.53 per 100 cubic feet, or 748 gallons. Even if the total rate rises to $6.06 per 100 cubic feet by 2014, that is still less than a penny per gallon.

Finance Director Jim Nowicki said the department can save money on chemical treatment costs, by completing a replacement program of some 31,000 meters in four years instead of three, and by restructuring its debt.

Councilman David Kaptain said any savings from refinancing debt should be used to try to lower the water rate as a whole.

"We all use water no matter what our income is. The impact on lower income people is costly," he said.

The next step is for the council to consider adopting the spending plan at its next meeting at 7 p.m. Dec. 16 at city hall, 150 Dexter Court.

Despite the progress in tweaking the water rates, the 800-pound gorilla still remains: finding a way to cut $1.4 million to $1.5 million from the fire department's spending.

Since November 2008, the city has had three rounds of layoffs and offered early retirement to workers. City leaders have said they don't want to raise taxes and that all departments have cut costs except the fire department.

The fire union has said it is willing to work with the city if it does not impact service. Earlier this week, Schock said both sides need to get something done soon.

"We've got about a month. It has to be a real savings, a solid $1.5 million," he said. "The question is: Is that something we just end up doing or is it something the fire department works with us on?"