East Dundee mulls sewer rate hike

A sewer rate increase may be in the works for East Dundee sewer users if the village is unable to find a way to lower its debt payments on a loan for the village's water treatment facility.

Although a deficit is not anticipated for the current fiscal year, village officials said the sewer fund faces a $100,000 deficit if a debt service reduction is not found, Village Administrator Frank Koehler said.

The increase could be as much as $1 per 1,000 gallons of sewer used, taking the rate from $4.20 to $5.20 per 1,000 gallons.

Currently, the village pays $400,000 annually and is expected to repay the loan in the next nine years. However, the village will be unable to maintain that level of debt service.

Much of the problem relates to the loss of some of the village's largest businesses in the past few years, including Dominick's, Santa's Village and Raging Rapids, Koehler said.

"The costs of operating the water treatment plant have not gone up, the volume has decreased," Koehler said. "But the fixed costs still remain."

Village Trustee Jeff Lynam said officials are mulling other options, such as refinancing the loan through the Illinois Environmental Protection Agency or the bond market, deferring payments or reallocating a portion of the village's home rule sales tax.

"I would like to see what kind of relief we can get from the IEPA," Lynam said. "But at the same time the questions have to be answered and the only thing we can come up with is a rate increase if we can't get any relief."

Trustee Rob Gorman added the village could process additional flow from West Dundee for a nominal amount of revenue.