W. Dundee restructures water, sewer rates

A new water and sewer rate structure in West Dundee will encourage residents to think about the environment and help the village utility overcome a $500,000 deficit.

Village staff at Monday's committee of the whole meeting supported a tiered rate structure, which incrementally charges users a higher rate the more water they use. In addition, the board will increase the administrative fee from $2.50 per month to $10 per month.

The village board is expected to approve the changes at its next regular board meeting scheduled for Monday, April 19.

Village President Larry Keller said the new rates would give water and sewer users an incentive to use less, and also generate needed revenue for the fund that is about $500,000 in the red and faces another $100,000 deficit.

"Maybe we would do a better job of conserving water if we have to pay a little more," Keller said. "And it will help the fund turn into a true enterprise fund, which means it pays for itself. We've fallen behind and we need to do something."

Under the new structure, those who use 4,000 gallons or less will pay $5.25 per 1,000 gallons used. Previously, the village charged $6.50 per 1,000 gallons with a minimum usage of 4,000 gallons.

Those who use less than 4,000 gallons will see a savings of $11 per bill.

The next tier - from 5,000 to 10,000 gallons - will cost $5.75 per 1,000 gallons used. Usage between 11,000 and 20,000 gallons will cost $6.75, while 20,000 gallons and more will be charged $7 per 1,000 gallons.

For example, at 15,000 gallon, the base fee is $20, the first 4,000 gallons are charged $21, the second 6,000 gallons are charged $34.50 and the last 5,000 gallons are charged $33.75 for a total bill of $109.25.

The village expects to generate an additional $136,000 per year.

Village Manager Joe Cavallaro said the village has subsidized the water and sewer fund using home rule sales taxes for more than 30 years.