Why Buffalo Grove is looking at increasing facility fee

Buffalo Grove may increase the fee it uses to help fund water and sewer improvements.

The possible 10% increase was part of a discussion of water and sewer issues by the village board last week. No decision has been made.

The fixed facility fee was instituted in 2020, as part of a strategy to pay for $150 million in needed water and sewer infrastructure improvements. The strategy also included a water rate increase and a new local motor fuel tax.

“When the funding strategy was developed, we didn't want to have an impact on the tax levy,” village Finance Director Chris Black said.

The fixed facility fee is a flat rate assessed to each metered account for access to the water and sewer system. The current rate is $17.39 per month for single-family properties. For multifamily and commercial properties, depending on the size of the meter, it can be as high as $199.20.

Black said the fee generates about $2.5 million annually and is scheduled to be reevaluated every five years.

Last week’s discussion also included talk of plans to issue debt for water and sewer improvements. Black said bond issues are planned in 2030 and 2033.

He said the village has about $80 million in improvements planned from 2030 to 2036.

An additional source of revenue is coming from the sale of water to the Pekara and Horatio Gardens neighborhoods, in an agreement with the Lake County Public Works Department, Black said.