Gurnee leaders considering spending village funds to help offset water rate hike

The village of Gurnee is considering using $2 million in reserves to reduce the size of a water rate hike driven by inflation.

Mayor Tom Hood said at the village board meeting this week that he asked the village staff to include assistance to residents in the next budget.

"We do a great job of not having a property tax and not having a utility tax," Hood said Monday. "When you look across the budget, water is really pretty much the only thing left that every resident has some contact with."

The village water rate has been frozen at $5.16 per thousand gallons since fiscal year 2021.

Under the plan, the village would spend $2 million from the general fund and raise the rate 3.5% to $5.34 per thousand gallons.

Brian Gosnell, the village's finance director, said the village would need to raise water rates to around $5.93 per thousand gallons to keep up with the last two years of inflation.

The budget isn't usually approved until the spring.

In addition, leaders are considering a special lower water rate for seniors that would cost the village $150,000 to $250,000 annually. The senior water price would apply to about 1,700 accounts out of 9,900, Gosnell said.

If the senior rate is part of the budget, it would be the first time Gurnee has had a special rate for residents 65 and older, Gosnell said. He said Lake Zurich, Waukegan, Libertyville and Wauconda have senior rates.

Hood acknowledged at the meeting that going with the smaller increase over a larger one may wind up being temporary, depending on economic conditions, but he said it was important to help residents now.

"I think that we can give the residents a break when we have the opportunity," Hood said. "Maybe we won't have that opportunity a year from now."