Village officials are considering water and sewer rate increases as part of the Fiscal Year 2026–27 budget, as they work to stabilize the system and reduce its reliance on the general fund.
During a board meeting on March 16, finance staff presented a rate analysis outlining several pricing options and recommended a moderate increase rather than full cost recovery, aiming to balance the village’s financial needs with the impact on residents.
The proposal calls for implementing 50% of “Option C,” not the full model, which accounts for water supply costs, operations and bad debt. Under that approach, rates would increase by about $3.30 per 1,000 gallons, or roughly 17% overall. Stormwater rates would increase by 61 cents per 1,000 gallons. The sanitary sewer rehabilitation fee would rise from $27 to $28, while the sewer-only flat fee would remain $81 per quarter.
Village data show current rates at $14.36 per 1,000 gallons for water, $4.93 for sewer and $2.47 for stormwater. Under a full cost-recovery model that includes capital reinvestment, water rates could increase to $21.64 and sewer rates to $9.66 per 1,000 gallons, nearly doubling sewer costs. Officials said those increases are not being recommended at this time.
Financial projections presented to the board show the water and sewer fund is improving but still facing pressure. The preliminary Fiscal Year 2026-27 budget includes an operating deficit of about $234,000 and a total deficit of roughly $1.1 million when capital projects are included. If the proposed increase is adopted, the fund would shift to an estimated $447,000 operating surplus but would still require approximately $420,000 from fund balance to support capital improvements.
Officials emphasized that while the fund is trending in a stronger direction, it is not yet fully self-sustaining and continues to rely on support from the general fund. The long-term goal is to transition the system into a fully independent enterprise fund capable of covering operations, staffing and infrastructure replacement through user fees alone.
Several factors are contributing to the need for higher rates, including rising water purchase and operating costs, ongoing infrastructure investments such as lead service line replacement, system water loss and unpaid bills, which are estimated at about 1% of revenue. The village has also shifted its rate-setting approach in recent years to better account for full system costs, including operations and long-term capital needs.
As part of broader improvements, the village will begin transitioning to monthly water billing starting in May. Officials said the change is expected to help detect leaks more quickly, improve billing accuracy and provide more consistent revenue tracking. Residents are currently billed on a quarterly basis.
Staff said a formal ordinance will be brought back to the board for approval at a future meeting.
