Des Plaines may raise water rates in January

A new water/sewer rate study recommends a dramatic increase to Des Plaines’ water rates starting in January, and escalating fees for the next five years.

That’s on top of Chicago’s recently unveiled four-year water rate hikes, which Des Plaines should pass on to its residents, said Kristin Rehg, with Baxter & Woodman Inc., consultants hired to perform the study.

The study, presented during a special meeting Wednesday, offers three scenarios for increasing water/sewer usage rates each year in January.

That means the average bimonthly residential bill in Des Plaines, presently at $62, could jump to between $80 and $85 in January 2012, and keep increasing each year until Fiscal Year 2016 when it is projected to be between $98 and $116, not including the expected Chicago increase. The study also calls for higher connection and reinstatement fees for people disconnected for nonpayment.

Des Plaines’ current water/sewer rate falls just below the average when compared with neighboring communities. A survey of 15 nearby towns found Mount Prospect charged the most, $102, while Palatine’s rate was the among the lowest at $40.

For 2012, the study recommends setting a fixed, bimonthly base cost for providing water and sewer service to single-family residential customers at $10. The fixed cost would escalate based on meter size and capacity to more than $300 for large condominium/apartment complexes.

Finance committee chairman and 3rd Ward Alderman Matt Bogusz said water/sewer fees are not a moneymaker for the city and the every dollar brought in is used on salaries and infrastructure.

City officials have been talking about raising water rates for months. They say an increase is needed to help maintain aging infrastructure, which includes replacing roughly 13,000 analog water meters with a new digital automated meter reading system.

Cash reserves in the city’s water and sewer fund, which has been operating in deficit for a couple of years, are falling, which is another reason for the proposed increase, Acting City Manager Jason Slowinski said.

The fund, which covers operations and maintenance costs, is projected to have a $2.3 million operating deficit in the current year.

“That trend is expected to continue,” Rehg said. “If the rates are not increased, your find balance is going to be completely depleted in early Fiscal Year 2013.”

Rehg said the city needs to invest more annually in maintaining its water mains and sewers, replace equipment at its 12 pumping facilities to maintain water supply and prevent sewer backups, replace water meters, and periodically repaint water storage tanks.

Des Plaines averages 100 water main breaks yearly. The city identified more than $22 million in needed water main improvements in its 2007 water system study.

Roughly 10 percent to 15 percent of city water mains are at the end of a 75-year life span, 20 percent are nearing 60 years, and the majority are in the 50-year range, Public Works and Engineering Director Tim Oakley said.

Des Plaines spent $725,000 on water main replacement and $65,000 on water meters this year.

Per the study’s recommendations, the city should invest between $1 million and $2.7 million annually on replacing water mains and spend between $270,000 and $540,000 yearly on replacing sewers based on a 75-year life cycle.

The study also recommends spending $570,000 yearly on replacing water meters to reduce overtime repair costs and ensure accurate meter readings, and setting aside money yearly for other infrastructure work, Rehg said.

The study recommends water connection fees are projected to go up from $300 for the average residential customer to $750, while sewer connection fees would remain the same.

Some aldermen had trouble with residents being saddled with a $25-$50 increase in the penalty if their water service is disconnected and has to be reinstated.

“You realize if they are not paying their bill, they are probably cash-strapped,” 6th Ward Alderman Mark Walsten said.

Rehg said some communities offer low-income assistance programs for residents to help with the cost.