East Dundee to credit sewer accounts

East Dundee will reimburse sewer customers who paid a monthly surcharge that the village assessed last year to help pay off a $5.9 million loan.

Language in the ordinance repealing the $8.90 monthly surcharge, which the village board approved this week, states that, "all users who paid the sewer debt reduction fee ... be credited in an amount equal to the amount paid, on future wastewater user charge bills."

The village will return about $74,000 to sewer customers that was collected in the last six months.

"In light of the legislation and the provisions repealing the fund, those that paid into it will receive a refund," Village President Jerry Bartels said.

Trustee Michael Ruffulo opposed the flat fee. "I am glad it worked out the way it did," he said. "You are never pleased with adding bills, but the village has an obligation to pay that money back."

Finance Director Nick Cinquegrani said the charges will appear as a credit for customers still in the village. The village will also attempt to reimburse those who have since moved out of town.

But a decision on whether the village will reimburse the 1,375 customers in one lump-sum or over a number of billing cycles is not expected until the next board meeting scheduled for Monday, April 19.

In September, the village board approved a sewer debt-reduction fee in addition to the usage rate of $4.20 per 1,000 gallons of water used. However, only homes and businesses with a water meter were hit with the fee each billing cycle - or $17.80 every two months.

Some residents - including former board member Jim Carlini and former Kane County Board member Lee Barrett - argued the fee unfairly favored businesses and multifamily housing units that often have one water meter but several different users. The Illinois Environmental Protection Agency had notified the village attorney that the village could not use the flat-rate to pay down the debt.

On the advice of Village Attorney Patrick O'Connor, trustees on Monday repealed the fee and in turn raised the sewer rate from $4.20 to $5.73 per 1,000 gallons used. Now, $2 from each bill is earmarked for debt repayment.