Buffalo Grove residents could see big hike in water, sewer fees

Buffalo Grove residents could be paying significantly more in water fees - more than twice as much by 2024 - as village officials search for ways to fund nearly $100 million in system upgrades needed over the next 20 years.

"For decades, literally decades, the village didn't raise the water rates," Trustee David Weidenfeld said this week, as the village board discussed water system needs.

"So now we have a couple of choices, and they all stink," he said. "No matter how we do this, it's going to cost people a bunch, because you can't not fix the water system."

Weidenfeld spoke Monday after Public Works Director Michael Reynolds presented the findings of a study of the village's water and sewer system conducted by the engineering firm Strand Associates Inc.

Those findings indicate the village needs to make $29 million in upgrades over the next five years to keep the system functioning as designed. That includes $22 million in water improvements and $7 million in upgrades to a sewer system beset by fatigue, failure and age.

The study also suggested the village should spend a total of $95 million over the next two decades to address current and future needs.

Paying for all that work will require rate increases, officials say. The village also will consider imposing an new fixed facility fee, as recommended by Strand, of $9.26 per month for water and $8.13 for sewer.

"That premise (of the fee) is that regardless of whether you use water or you don't, we still need to maintain and operate the system," Reynolds said.

Under Strand's recommendation, water rates per 1,000 gallons would rise to $7.02 in 2020, $7.73 in 2021, $8.51 in 2022, $9.37 in 2023 and $10.32 in 2024.

Sewer fees would jump from the current $1.25 to $1.70 per 1,000 gallons in 2020, $1.76 in 2021, $1.83 in 2022, $1.91 in 2023 and $1.98 in 2024, under the recommendation.

Village officials say they've kept water rates low for decades. From 1983 through 2008, residents paid $1.57 per 1,000 gallons. Rates then rose to $2.40 per 1,000 gallons before jumping to $3.24 in 2013 and $4.20 in 2014. In 2019, residents are paying $5.12 per 1,000 gallons.

The average monthly bill in Buffalo Grove, according to the Strand report, is $23.04. That's well below Hoffman Estates, where it is $52.08.

"The key I'm stressing to people is that the lack of water rate increases over 25 years resulted in roughly $43 million in lost revenue opportunity for those years," Reynolds said. "Had we just simply increased the rate each year by the cost of living, we would have $43 million in the bank. We would be reasonably caught up with past capital improvements."

Village Manager Dane Bragg said he and his staff will return with findings and options at the village board's August committee-of-the-whole meeting.

Implementation of a plan would likely to occur at the beginning of next year, he said.