East Dundee repeals sewer fee

East Dundee trustees have repealed a controversial sewer surcharge - but the removal of the flat fee necessitated a usage-rate increase to cover debt repayment and operating costs for the village's wastewater treatment facility.

Trustees on Monday removed the $17.80 sewer debt-reduction fee introduced last September to help the village pay off a $5.9 million Illinois Environmental Protection Agency loan. The loan, taken out in 1997, was used to expand the village's wastewater treatment facility.

In lieu of the surcharge, which officials estimated would generate about $147,000 per year, trustees increased the village's sewer rate from $4.20 per 1,000 gallons to $5.73 per 1,000 gallons.

Village Administrator Frank Koehler said the rate increase is equivalent to the surcharge.

"The rates will not bring in any additional revenue; it's a push," Koehler said before Monday's meeting.

Under the surcharge structure, all sewer users paid $4.20 per 1,000 gallons, but homes and businesses with a water meter also were hit with the surcharge each billing cycle - every two months.

Residents argued the surcharge was unfair because it was not based on actual usage. Opponents, including former trustee Jim Carlini and former Kane County Board member Lee Barrett, said the fee favored multifamily residences that often have one water meter with several users, as well as businesses that use more sewer and water than residential users.

Village Finance Director Nick Cinquegrani said the IEPA also recommended the village pay down the loan based on usage. Cinquegrani said the village pays about $400,000 per year in debt service on the loan, which is set to expire in 2018. A balance of about $2.84 million remains.

Trustees instructed village staff to reflect on bills - which will hit mailboxes more than a week late - that $2 from the new rate will be used for debt reduction. Once the debt is paid off, trustees said, the increase would no longer apply.

"We need to let residents know that this is a temporary usage charge that will go away in 2018," Trustee Michael Ruffulo said. "We all know that once we raise a rate, we will never bring it back down."

Residents will have 21 days from the day bills are posted to pay.