Title
Chicago Water Rate Increase - Approval
History
In January 2008, the Village Board approved water rate increases for 2008 - 2012 based on an updated water rate study conducted by Municipal and Financial Services Group. Subsequent to approval of these rates, the Village received notice that the City of Chicago planned to increase water rates due to the increasing costs of operations and maintenance of the system that delivered water to customers outside of the limits of the City. Any increase in City of Chicago water rates are passed on to the Village by the Village of Oak Lawn. The City of Chicago rate increase for calenars years 2008, 2009 and 2010 was 15%, 15% and 14%, respectively. These increases were factored into the Village's rates accordingly. For calendar years 2011 and 2012, the Village factored in increases of 3% in its overall rates, to cover any increases passed on by the City of Chicago and/or the Village of Oak Lawn, as well as to cover any increases in the Village's internal cost of operations.
Recently, we were notified that the City of Chicago approved as part of its current budget process an additional increase in the rates charged to water customers due to aging infrastructure and the need for extensive repairs. A rate increase of 25% will go into effect on January 1, 2012, with subsequent increases of 15%, 15% and 15% on January 1, 2013, 2014 and 2015, respectively. Once again, the Village of Oak Lawn will pass these rate increases on to the Village.
As previously mentioned, the Village Board originally approved a rate increase of approximately 3% for calendar years 2011 and 2012, reflected as "Current Proposed" on the attached schedule. Based upon the rate increases approved by the City of Chicago, staff is recommending that the Board approve the "Revised Proposed" rates for calendar year 2012 as reflected on the attached schedule. As we move closer to finalizing the Water Supply Agreement with the Village of Oak Lawn...
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