New stormwater fee will appear on Elk Grove water bills
Elk Grove Village home and business owners will see a new monthly fee on their water/sewer bills a little more than a month from now - the second in a line of fee and tax increases that will help pay for nearly $5 million in new annual spending on roads, sidewalks and drainage.
The new stormwater management fee, formally approved by the village board this week, will charge water and sewer users based on water meter size, which for most homeowners will be $5 a month, or $60 a year.
That's the rate for a three-quarter-inch meter, while the maximum charge will be $40 a month for a 4-inch meter.
All together, the new fees are expected to generate $1 million annually for the infrastructure program.
Residents and business owners will see the new fee on their Sept. 30 water/sewer bills, for which payment is due in October.
"It does help us with all the work we're doing," said Mayor Craig Johnson, referencing the street, sidewalk and rear-yard drainage improvements estimated to cost $4.75 million in new annual expenditures.
The first tax hike to help pay for the program came in May, when village trustees approved an increase in the municipal natural gas use tax, from 2 cents per therm to 5 cents per therm. Officials predict the higher tax will cost most homeowners an extra $2.50 a month, or $30 a year, and generate $1.5 million annually.
Still to come a year from now is perhaps the biggest hit - a property tax hike that will cost the owner of a $300,000 house $68 a year, officials estimate. It will mark Elk Grove's first increase in the general property tax levy in 14 years, though the village has regularly approved increases in the levies that cover police and fire pensions. Officials expect that increase to generate an extra $2 million a year for the capital projects.
They also plan to use an expected surplus from electric utility taxes, worth $250,000 annually.
Johnson said other towns in the Northwest suburbs are likewise ramping up their infrastructure work, but Elk Grove's approach is to utilize various funding mechanisms over time, as opposed to borrowing through a one-time major bond issue.
"We spread them out so as not to impact people all at one time," Johnson said.