G-689 - 12/11/2001 - WATER - Ordinances Supporting DocumentsOF 041r
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VILLAGE OF OAK BROOK
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Village Board Transmittal Memorandum
DATE: December 4, 2001
SUBJECT: Water Rate Increase
FROM: Darrell Langlois
RECOMMENDATION: That the Village Board approve the attached ordinance increasing
the consumption rate for water from $2.35 per 1,000 gallons to $2.60
per 1,000 gallons.
For many years, the Village of Oak Brook's water rate has been among the lowest of all DuPage Water
Commission members. The existing rate of $2.35 per 1,000 gallons consumed was instituted in 1995
as part of a two fold program to 1) simplify billing methodology by eliminating minimum billing based
on meter size and 2) gradually reduce excess fund balances over time due primarily to "freed up" bond
reserves once the final payment was made on the 1973 Water Revenue Bonds and rebates received
from Du Page Water Commission'. In order to reduce excess fund balances, the rate instituted was
intentionally set below the actual cost of service.
When the consumption rate was set in 1995 at $2.35 per 1,000 gallons, we had planned to increase the
rate to $3.10 in 1998 and further to $3.50 in 2000. At that point we were projected to be at our actual
cost of service rate, or "break even point ". However, due to favorable operating results, lower than
expected capital outlays, and most importantly the extent of the DuPage Water Commission rebate and
rate program, the Village has been able to maintain the current rate for four years longer than originally
projected.
Based on the draft 2002 -2006 Five -Year Financial Plan, our current break -even water rate is
approximately $3.25 per 1,000 gallons. For 2001, unrestricted cash in the Water Fund is projected to
decrease by approximately $800,000. Without a rate increase, unrestricted cash would likely decrease
by an additional $1.0 million in 2002. Consistent with the recommendations contained in both the
draft 2002 -2006 Five -Year Financial Plan and the 2002 Municipal Budget, a rate increase to $2.60 per
1,000 gallons (still $0.60 less than the actual cost of providing water) is recommended at this time in
order to slow down the fund balance decrease and in order to gradually increase rates over time until a
cost of service rate is reached. The rate is projected to increase further to $2.85 in 2004. Even with the
recommended increase our retail water rate will remain as one of lowest among the DuPage Water
Commission customers.
Please let me know if you have any comments or questions.
' Due to excess fund balances and higher than expected sales tax collections, the DuPage Water Commission rebated
approximately $3 4 million to Oak Brook from 1994 through 1998. The rebate program was eliminated in 1999 and
replaced with a 25% reduction in fixed cost payments, which amounts to savings of approximately $210,000 annually
waterratemcrease doc
B. 3) That review consisted of both an internal assessment of job
responsibilities relative to pay and an external market wage survey using
the comparable communities that were identified in the 1997 arbitration
proceeding involving the Village and Teamsters Local 714 — Law
Enforcement Division. The CPI, ECI and pay practices of the labor
comparables were all considered in developing a recommended 3.5
percent adjustment to all pay grades for 2002.
The first two amendments are housekeeping in nature, clarifying that the
ECI used for purposes of the Village's evaluation is the one applicable
for State and local government employees. The second amendment
raises the amount of the top -of -grade merit bonus from $750 for an
"Exceeds Expectations" evaluation and $1,500 for an "Excellent"
evaluation to $800 and $1,600, respectively.
This change reflects parity with the increase to the length of service
stipend applicable for members of the bargaining unit in the Fire
Department.
Motion by Trustee Caleel, seconded by Trustee Savino, that the Village
Board adopt Resolution 2001 - SAP -EX2 -R -794, "A Resolution
Approving the Salary Plan and Salary Administration Policy for Non -
Represented Employees for 2002 ". ROLL CALL VOTE:
Ayes: 5 - Trustees Caleel, Craig, Korin, Miologos and Savino.
Nays: 0 - None.
Absent: 0 - None. Motion carried.
04) ORDINANCE 2001 -WA -G -689, AN ORDINANCE AMENDING ORD 0I -WA -G -689,
AMEND CHAP 5 OF
CHAPTER 5 OF TITLE 8 OF THE VILLAGE CODE OF THE TITLE 8 -ADJ WTR
VILLAGE OF OAK BROOK, ILLINOIS AND ADJUSTING WATER CHGS
CHARGES.
Based on the draft 2002 -2006 Five -Year Financial Plan, the Village's
current break -even water rate is approximately $3.25 per 1,000 gallons.
For 2001, unrestricted cash in the Water Fund is projected to decrease
by approximately $800,000. Without a rate increase, unrestricted cash
would likely decrease by an additional $1.0 million in 2002. Consistent
with the recommendations contained in both the draft 2002 -2006 Five -
Year Financial Plan and the 2002 Municipal Budget, a rate increase to
$2.60 per 1,000 gallons (still $0.60 less than the actual cost of providing
water) is recommended at this time in order to slow down the fund
balance decrease and in order to gradually increase rates over time until
a cost of service rate is reached. The rate is projected to increase further
to $2.85 in 2004.
VILLAGE OF OAK BROOK Minutes Page 9 of 14 December 11, 2001
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8. B. 4) Even with the recommended increase, the Village's retail water rate will
remain one of lowest among the DuPage Water Commission customers.
Motion by Trustee Craig, seconded by Trustee Caleel, that the Village
Board approve Ordinance 2001 -WA -G -689, "An Ordinance Amending
Chapter 5 of Title 8 of the Village Code of the Village of Oak Brook,
Illinois and Adjusting Water Charges ". ROLL CALL VOTE:
Ayes: 4 — Trustees Caleel, Craig, Korin and Miologos.
Nays: 1 — Trustee Savino.
Absent: 0 - None. Motion carried.
5) ORDINANCE 2001- SC -EX I -G -690, AN ORDINANCE ADOPTING A ORD 01- SC- EXI-c-
690, ADPT AMEND
COMPREHENSIVE AMENDMENT TO TITLE 12 ENTITLED TITLE 12, CHAP 1, 2,
"VILLAGE RECREATIONAL FACILITIES ", CHAPTERS 1, 2 AND & 3 - VIL RECR FAC
3 OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK
ILLINOIS
The ordinance adopts the comprehensive amendment to Title 12 of the
Village Code as reviewed by the Board on November 27, 2001. The
principal changes from the current Code remain as follows:
Sec. 12-2-3. A new golf rate is established which increases non - resident
greens fees $2 and resident fees $.50 to $1. Membership fees increase
$25 to $50 depending on class. Power cart rates increase $1.
Sec. 12- 2 -4 -D. Language is added to clarify and limit a foursome's
right to hold a slot for a missing member.
Sec. 12 -2 -5. A new section to replace former Sec. 12- 2 -4 -E, addressing
non - permanent starting times. Language is added to clarify existing
practice regarding reservations.
Sec. 12 -3 -2. A new Bath & Tennis Club membership fee schedule is
established which increases fees $25 to $50 dependent upon class of
membership.
Sec. 12 -3 -3. Language is added to clarify that children over the age of
ten need a tennis membership in order to participate in programs. The
staff has more than occasionally been confronted by members (and non-
members) who attempt to enroll'non- member children in programs.
VILLAGE OF OAK BROOK Minutes Page 10 of 14 December 11, 2001
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Village of
ak Brook
1200 Oak Brook Road
Oak Brook, IL 60523 -2255
Website
www.oak- brook.org
Administration
630 990 3000
FAX 630 990 0876
Community
Development
630 990 3045
FAX 630 990 3985
Engineering
Department
630 990 3010
FAX 630 990 3985
Fire Department
630 990 3040
FAX 630 990 2392
Police Department
630 990 2358
FAX 630 990 7484
Public Works
Department
630 990 3044
FAX 630 472 0223
Oak Brook
Public Library
1112 Oak Brook Road
Oak Brook, IL 60523 -4623
630 990 2222
FAX 630 990 0170
Oak Brook Sports Core
Bath & Tennis Club
700 Oak Brook Road
Oak Brook, IL 60523 -4600
630 990 3020
FAX 630 990 1002
Golf Club
2606 York Road
Oak Brook, IL 60523 -4602
630 990 3032
FAX 630 990 0245
December 13, 2001
Sterling Codifiers, Inc.
Attention: Robertson S. Rollins, General Manager
7600 Mineral Drive
Coeur d'Alene, ID 83 814
Dear Rob:
The Village Board, at their Board Meeting of Tuesday, December 11,
2001, passed and approved the following ordinances:
ORDINANCE 2001 -CD -BC -EXI -G -688 AN ORDINANCE
AMENDING SECTION 10 -4 -1 OF CHAPTER 10 OF THE VILLAGE
CODE RELATING TO BUILDING REGULATIONS AND FEE
4C..TNR.T)T TT .F.
,,-6RDINANCE 2001 -WA -G -689 AN ORDINANCE AMENDING
CHAPTER 5 OF TITLE 8 OF THE VILLAGE CODE OF THE
VILLAGE OF OAK BROOK, ILLINOIS AND ADJUSTING WATER
CHARGES
ORDINANCE 2001 -SC -EXI -G -690 AN ORDINANCE ADOPTING A
COMPREHENSIVE AMENDMENT TO TITLE 12 ENTITLED
"VILLAGE RECREATIONAL FACILITIES ", CHAPTERS 1, 2 AND 3
OF THE VILLAGE CODE OF THE VILLAGE OF OAK BROOK.
ILLINOIS
The above Ordinances are being forwarded to your for inclusion in the
Code of Ordinances of the Village of Oak Brook. I would appreciate your
acknowledging receipt of these Ordinances.
Sincerely,
Richard A. Martens
Village Attorney
RAM/jr
Enclosure