Geneva water, sewer bills may increase soon

Genevans may see their second water price increase in less than three months, under a plan the city council will vote on July 2.

The council is poised to accept a consultant’s recommendation that it increase the price of water consumed 5 percent and the price of sewer service 6 percent each of the next three years.

After that, the plan recommends increasing the prices annually by the rate of inflation.

The council reviewed the plan at its committee of the whole meeting Monday and voted 9-1 to recommend it.

The average Geneva residential customer uses 790 cubic feet of water per month, paying $52.39. The proposed increases would add $2.74 to the water portion of the bill the first year, $3.21 the second and $3.36 the third.

“It is not a question of whether you are going to have to do it. It is a question of when you are going to have to do it,” said David Hyder, vice president of Annapolis-based Municipal Financial and Services Group. Its study found the city is relying almost exclusively on water and sewer sales for the utilities’ income (97 percent), when 80 to 90 percent of the spending is attributable to fixed costs (such as pipes.) He recommends the city adjust its rates so at least 20 percent of the revenue comes from fixed-rate charges — flat fees charged to customers regardless of how much water or sewer service they use.

The fixed-rate charges would also be increased, but would include the first 100 cubic feet of water and sewage each month.

The firm recommended that the city beef up spending on replacing water and sewer mains and pipes. About 36 percent of water pipes throughout the city are so old they are considered past their useful life, and the same holds for about 14 percent of the sewer pipes. It estimated replacing them would cost $15.7 million, and said the city is not in a position to borrow that money, so should build it up.

Hyder called it “proactive management. Whenever you are reactive, it is more expensive,” he said — including paying overtime for work done outside normal business hours.

Alderman Ralph Dantino favored an option that would have increased the water rate only 2.5 percent the first year, but his motion failed, garnering only three votes.

Alderman Chuck Brown noted that the city council could always, in the future, postpone an increase, if the financial situation of the utility is better. “It will be an easy decision to make. Easier than tonight’s,” he said.

Alderman Dean Kilburg noted that, due to the hot, dry weather, water consumption is likely to increase, and so will the money the city takes in. The consultant cautioned against relying on that increased consumption.

The plan also recommends charging a fine for late water and sewer payments.

The consultant’s report is available at geneva.il.us/agendas/cowpacket.pdf.