East Dundee weighing 30% hike in water rates to fund projects

East Dundee may hike its water rate by 20% in 2027 to help the village pay for $19 million in capital improvement projects over the next five years.

The current rate is $10.42 per 1,000 gallons, but would escalate to $12.51 per 1,000 gallons if approved, Brandiss West, finance and administrative services director, told the East Dundee Village Board at this week’s meeting.

While East Dundee officials said it’s difficult to determine how much water an average household uses, the Clean Water Center estimates American households typically use more than 300 gallons of water a day, or about 9,000 gallons a month.

An East Dundee property owner who uses 9,000 gallons of water a month would pay about $112 a month under the new rate — an increase of about $19 a month based on the center’s estimated average.

Village officials did not say how much new revenue the increase would generate, but that the increase would be in place for just one year.

East Dundee has $19 million in capital improvement projects planned for the next five years. Among them are water treatment facility improvements at a cost of $100,000; rehabilitation of well No. 6 for $600,000; lead service line replacement for $2.1 million for 2027; and utility extension south of Illinois 72 for $2.1 million.

“We have to fund those projects,” West said.

Baxter & Woodman’s Water and Wastewater 2024 Rate Study recommended a yearly 10% increase, but the board chose not to implement that because it wanted to keep the rate affordable for residents, she said.

However, the list of projects that need to be done — in addition to inflation and new, unfunded regulations — means the village now needs the 20% increase, West said.

East Dundee already has the highest water rate in the northern Kane County area.

Carpentersville’s fees are $6 per 1,000 gallons, and there’s a senior flat rate of $7.50. West Dundee has a tiered water rate, with fees ranging from $5.89 per 1,000 gallons to $19.95 per 1,000 gallons, depending on the amount of water used. The third-level fee is based on usage of 11,000 to 20,000 gallons, according to the village’s website.

Algonquin charges $8.65 per gallon, while Elgin charges $6.11 per cubic foot, according to public information.

Those communities are much larger than East Dundee, so the costs can be spread out over more users, West said. The village’s population is 3,150.

While it has a higher water rate, East Dundee’s property tax is about 40% lower than comparable communities, West said.

Sewer fees aren’t increasing. However, East Dundee will need another $7.5 million for sewer capital projects at some point in the future.

Trustees are expected to review the recommendation and approve it at an upcoming meeting, officials said.

Gloria Casas is a freelance reporter for The (Elgin) Courier-News.