G-1119 - 12/12/2017 - WATER - Ordinances Supporting Documents BOARD OF TRUSTEES MEETING
VILLAGE OF SAMUEL E. DEAN BOARD ROOM
OAK BR K BUTLER GOVERNMENT CENTER
c91200 OAK BROOK ROAD
OAK BROOK, ILLINOIS
630-368-5000
AGENDA ITEM
Regular Board of Trustees Meeting
of
December 12, 2017
SUBJECT: 2018 Water Rate Increase
FROM: Jason Paprocki, Finance Director J`
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: I move that the Village Board adopt Ordinance 2017-WA-G-
1119, "An Ordinance Amending Chapter 5 of Title 8 of the Village Code of The Village of Oak
Brook, Illinois Relating to Water Charges"which increases water rates 7%for fiscal year 2018.
Backaround/History:
On October 27,2015, a water rate study was presented to the Board by American Infrastructure
Technologies, LLC (AIT). One of the main points 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.
The 2018 Annual Budget and Five-Year Plan were prepared using the future rate increases
recommended by AIT,which include an increase of 7%for 2018. The Village water meter
replacement project is currently underway and is expected to be completed by the end of 2018.
Staff plans to meet with AIT during 2018 to update the water rate study to determine if the future
rates need to be adjusted.
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Water rates in 2018 using a 7%increase would be:
2017 2018
Annual increase 10% 7%
Fixed charge $10.00 $10.00
$/customer/month
Resident rate $9.35 $10.00
$/1,000 gallons
Non-resident rate $11.04 $11.81
$/1,000 gallons
Hydrant at 3003 Jorie Blvd $11.04 $11.81
$/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:
2017 2018 Increase
Resident $113.50 $120.00 $6.50
Non-Resident $130.40 $138.10 $7.70
A rate increase of 7%in 2018 would allow the Water Fund to proceed with its water meter and
radio collector replacement program. The increase would also help towards maintaining a
positive reserve balance to be used for future capital improvements.
Recommendation:
I move that the Village Board adopt Ordinance 2017-WA-G-1119, "An Ordinance Amending
Chapter 5 of Title 8 of the Village Code of The Village of Oak Brook, Illinois Relating to Water
Charges"which increases water rates 7%for fiscal year 2018.
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