G-1201 - 12/14/2021 - WATER - Ordinances Supporting Documents ITEM 11.13.4
BOARD OF TRUSTEES MEETING
VILLAGE OF SAMUEL E. DEAN BOARD ROOM
OAK B R920K o BUTLER GOVERNMENT CENTER
� 1200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
December 14, 2021
SUBJECT: 2022 Water Charges
FROM: Jason Paprocki, Finance Director
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move that the Village Board adopt Ordinance 2021-WA-G-
1201, "An Ordinance Amending Chapter 5 of Title 8 of the Village Code of The Village of Oak
Brook, Illinois Relating to Water Charges"which establishes water rates for fiscal year 2022.
Back-2round/History:
On October 27, 2015, a water rate study was presented to the Board by American Infrastructure
Technologies, LLC (AIT). One of the main takeaways of the report was that prior water rates
charged by Oak Brook were inadequate to maintain the water system financial health in the
future. Starting in 2012, the City of Chicago announced a 4-year rate increase of 25%, 15%,
15%, and 15% annually. DuPage Water Commission similarly raised its rates to pass on the
Chicago increase, as well as increases in its own expenditures. Over these years of increases,the
Village did not raise its water rates enough to keep up with the increases. The overall cash
reserve balance of the Water Fund did not meet future capital needs of the fund. The water rate
study recommended increases of 10% in years 2016 and 2017, and increases of 7%in years 2018
through 2020.
In late 2018, AIT completed an update to the original 2015 water rate study. The results of the
water rate study update recommended increases of 10% in 2019, 7% in 2020, 4% in 2021, 3% in
2022, and 2%in 2023. Capital outlay would not need to be capped annually and projects would
be able to be completed as planned. For 2019, the Village adopted a rate increase of 5%, or half
of the amount recommended by AIT. For 2020, the Village adopted a rate increase of 7%, which
matched AIT's recommendation. For 2021, the Village adopted a rate increase of 4%, which
matched AIT's recommendation.
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For 2022, staff is recommending the 3% increase that appeared in the AIT 2018 rate study. The
$10 fixed monthly charge is not changed for 2022. This increase will allow the Village to be
proactive in maintaining and upgrading its water system. There are a number of other factors the
Village will continue to monitor that may have an effect on future water rates, such as: new
development, total gallons pumped, DuPage Water Commission rates, and the potential for
selling non-corporate water lines.
The 2022 Annual Budget and Five-Year Plan were prepared using future rate increases of 3%
annually through 2026 in order to fund capital projects. These increases allow the Village to
follow its capital project schedule without delaying projects. If the non-corporate water lines are
sold, the potential influx of cash and reduced future capital improvements on those lines could
potentially reduce rates.
Water rates in 2022 using a 3% increase would be:
2021 2022
Annual increase 4.0% 3.0%
Fixed charge $10.00 $10.00
$/customer/month
Resident rate
$/1,000 gallons $11.69 $12.04
Non-resident rate
$/1,000 gallons $13.80 $14.21
Hydrant at 3003 Jorie Blvd $13.80 $14.21
$/1,000 gallons
Under the proposed increase, an estimated resident bill and non-resident bill assuming 10,000
gallons billed bimonthly would increase as follows:
2021 2022 Increase
Resident $136.90 $140.40 $3.50
Non-Resident $158.00 $162.10 $4.10
A rate increase of 3% in 2022 would allow the Water Fund to maintain a sufficient reserve
balance to be utilized for future capital improvements.
Recommendation:
The Village Board adopts Ordinance 2021-WA-G-1201, "An Ordinance Amending Chapter 5 of
Title 8 of the Village Code of The Village of Oak Brook, Illinois Relating to Water Charges",
which establishes water rates for fiscal year 2022.
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