HomeMy WebLinkAbout7.6 1st Reading of An Ordinance to Amend Water and Sewer Rates Set Forth in Appendix A, Division II11/29/2017 BoardDocs® Pro
Agenda Item Details
Meeting Nov 21, 2017 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m.
Category 7. NEW BUSINESS
Subject 7.6 1st reading of AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORTH IN
APPENDIX A, DIVISION II, VILLAGE OF MOUNT PROSPECT, ILLINOIS
Type Action
Preferred Date Nov 21, 2017
Absolute Date Nov 21, 2017
Fiscal Impact Yes
Budgeted Yes
Recommended Action Approve the attached ordinance increasing the water and sewer utility rate effective for bills
rendered on or after January 1, 2018.
Information
Included with this information is an ordinance for the Village Board to consider increasing the Village's combined water
and sewer utility rate. Recommendations from a comprehensive Water and Sewer Rate Study call for a multi-year rate
plan featuring a modified rate structure and a plan for annual increases from 2018 to 2025. This ordinance addresses
rate changes for 2018 and 2019 due to the expiration of the levy for Special Service Area 5.
The rate study was the first comprehensive, formal analysis the Village had performed to assess the water/sewer
enterprise revenue stream. The study was precipitated by the expiration of the revenue stream from Special Service Area
5 (SSA 5). SSA 5 annually generated approximately $1.5 million to fund capital improvements. The SSA 5 Levy expires at
the end of 2017. A continuing decline in water demand along with a marked increase in the cost of water also contributed
to the need for the rate study.
The water/sewer rate study presented a financial plan that phases in water and sewer main renewal funding at a pace
that accommodates an average life of 130 years by 2025. Our present capacity to fund these replacements is
approaching 600 years. The plan also includes funding for water system improvements to mitigate significant pressure
variances, surges, as well as volume and velocity problems in portions of the service area.
The proposed rate plan covers an 8 -year term commencing in 2018 and concludes in 2025. It recommends average
annual rate increases of 8% during this period. These increases include historically programmed 4%-5% increases
resulting in a net 3%-4% increases compared to the norm. The revenue stream is supplemented by the issuance of debt
in the front of the term. The increased rates would initially be utilized for debt service. The compounding effect of the
proposed revenue increases would ultimately supplant the need for additional debt during the remainder of the term. By
2025, the utilities are anticipated to generate enough cash to achieve the targeted level of reinvestment in main renewal
and replacement.
The current water rate structure is volumetric only. The study introduces a fixed component applied to all water service
connections, which is phased in over time. The Village's present sewer rate structure is primarily volumetric with the
exception of the Sewer Construction Fee, which the study recommend keeping. The Finance Commission recognized the
utility of adding a fixed component to mitigate declining and variable water consumption, and to provide a level of
revenue stability during unusually wet weather.
The rate study recommendations were unanimously endorsed by the Finance Commission following lengthy deliberation
during meetings on February 22, March 20, and June 22. The rate study was presented to the Village Board at a special
joint workshop with the Finance Commission on July 11. During the rate study, many alternative financial planning and
rate design scenarios were evaluated. Several of these alternatives were reviewed at the meetings, including:
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• Capping annual increases at 6% per year
• Recognizing potential growth in billing accounts
• Incorporating anticipated savings in JAWA water supply costs
• Evaluating rate structure options that included different fixed fee designs
The Village Board accepted the final recommendations of the Water and Sewer Rate Study and directed staff to proceed
with the financial plan to include the issuance of debt and incorporation of the proposed rate increased.
Existing and proposed water and sewer rates are presented in the table below.
.................................................................................................................................................................................................................................................................................................................................................................................................
2017
2018
2019
Water
.................................................................................................................................................................................................................................................................................................................................................................................................
Base Fee
$0.00
$3.00
$4.00
.................................................................................................................................................................................................................................................................................................................................................................................................
Volumetric Fee (per 1,000 gallons)
.................................................................................................................................................................................................................................................................................................................................................................................................
$9.19
$9.65
$10.33
.................................................................................................................................................................................................................................................................................................................................................................................................
Sewer
.....................................................................................................................................................................................................................................
Base Fee
$5...0.0
...................... $5...0.0
................................ $5...0.0
....Fee
..............(per
....., 0.0.0.........a.1.1.o.n.S...............................................................................................................1...78......................1....9.0................................2...0.9
Volumetric
Based on the proposed rate structure, the total water and sewer utility bill for a typical 5/8" customer using 5,000 gallons
per month would increase $5.90 per month. The net change in overall rates from 2017 to 2018 is 8.2%.
Alternatives
1. Village Board approval of the ordinance increasing water and sewer utility rates effective for bills rendered on or after
January 1, 2018.
2. Action at discretion of Village Board.
Staff Recommendation
It is recommended the Village Board approve the attached ordinance increasing the water and sewer utility rate effective
for bills rendered on or after January 1, 2018.
Village of mt Prospect—Finance—ordinance amending water and sewer rates for 2018 and 2019.pdf (165 KB)
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ORDINANCE NO.
AN ORDINANCE TO AMEND WATER AND SEWER RATES SET FORTH IN
APPENDIX A, DIVISION II, VILLAGE CODE OF MOUNT PROSPECT, ILLINOIS
WHEREAS, the Village of Mount Prospect is a home rule municipality as defined by Article
VII, § 6 of the Illinois Constitution of 1970; and
WHEREAS, the President and Board of Trustees of the Village of Mount Prospect desire
to make certain amendments to the Village Code of Mount Prospect as set forth below; and
WHEREAS, pursuant to the authority granted under the Illinois Municipal Code and in
accordance with home rule authority granted to home rule municipalities, the President and Board
of Trustees of the Village of Mount Prospect approve the amendments set forth below.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: Appendix A, Section 9.410, "Water Rates," to Division II, "Fees, Rates and
Taxes," to Chapter 9, "Public Utilities, Pavement and Tree Regulations," to the Mount Prospect
Village Code shall be amended to read in its entirety as follows:
Sec. 9.410 WATER RATES:
The following rates are effective for water bills rendered on or after January 1, 2018:
A. All village water users within the village, having a direct or indirect connection with
village water mains or pipes: $9.65 per 1,000 gallons of water consumed or portion
thereof.
All village water users within the village shall have the following Base Fees per bill:
5/8 inch meter
$3.00
3/4 inch meter
$3.00
1 inch meter
$3.00
1 '/2 inch meter
$5.00
2 inch meter
$7.00
3 inch meter
$22.00
4 inch meter
$28.00
6 inch meter
$41.00
8 inch meter
$56.00
All village water users outside the corporate limits of the village having a direct or
indirect connection with village water mains or pipes: $19.30 per 1,000 gallons of
water consumed or portion thereof.
All village water users outside the village shall have the following Base Fees per
bill:
5/8 inch meter
$6.00
3/4 inch meter
$6.00
1 inch meter
$6.00
1 '/2 inch meter
$10.00
2 inch meter
$14.00
3 inch meter
$44.00
4 inch meter
$56.00
6 inch meter
$82.00
8 inch meter
$112.00
All village water users located outside the boundaries of Special Service Area 5
shall pay an additional monthly availability charge based upon the size of the water
meter as follows:
5/8 inch meter
$10.00
3/4 inch meter
$15.00
1 inch meter
$30.00
1 '/2 inch meter
$50.00
2 inch meter
$90.00
3 inch meter
$150.00
4 inch meter
$250.00
6 inch meter
$475.00
8 inch meter
$990.00
B. Hookup charge for water furnished by truckload: $10.00
The following rates are effective for water bills rendered on or after January 1, 2019:
A. All village water users within the village, having a direct or indirect connection with
village water mains or pipes: $10.33 per 1,000 gallons of water consumed or
portion thereof.
All village water users within the village shall have the following Base Fees per bill:
5/8 inch meter
$4.00
% inch meter
$4.00
1 inch meter
$4.00
1 '/2 inch meter
$6.00
2 inch meter
$9.00
3 inch meter
$29.00
4 inch meter
$27.00
6 inch meter
$55.00
8 inch meter
$75.00
All village water users outside the corporate limits of the village having a direct or
indirect connection with village water mains or pipes: $20.66 per 1,000 gallons of
water consumed or portion thereof.
All village water users outside the village shall have the following Base Fees per
bill:
5/8 inch meter
$8.00
3/4 inch meter
$8.00
1 inch meter
$8.00
1 '/2 inch meter
$12.00
2 inch meter
$18.00
3 inch meter
$58.00
4 inch meter
$74.00
6 inch meter
$110.00
8 inch meter
$150.00
B. Hookup charge for water furnished by truckload: $10.00.
SECTION TWO: Appendix A, Section 9.507, "Sewer Rates," to Division II, "Fees, Rates and
Taxes," to Chapter 9, "Public Utilities, Pavement and Tree Regulations," to the Mount Prospect
Village Code shall be amended to read in its entirety as follows:
Sec. 9.507 SEWER RATES:
The following rates are effective for sewer bills rendered on or after January 1, 2018:
C. All village sewer users within the corporate limits of the village having a direct or
indirect connection with the village sewer and water mains or pipes: $1.90 per
1,000 gallons of water consumed or portion thereof.
All village sewer users within the corporate limits of the village having a direct or
indirect connection with the village's sewer mains or pipes but not with village water
mains or pipes: $5.00 utilization fee per month per dwelling unit.
All village sewer users outside the corporate limits of the village having a direct or
indirect connection with the village's water and sewer mains or pipes: $3.80 per
1,000 gallons of water consumed or portion thereof.
All village sewer users outside the corporate limits of the village having a direct or
indirect connection with the village's sewer mains or pipes, but not with village
water mains or pipes: $10.00 utilization fee per month per unit dwelling.
The Base Fee per bill for sewer users within the village shall be $5.00. The Base
Fee per bill for sewer users outside the village shall be $10.00.
The following rates are effective for sewer bills rendered on or after January 1, 2019:
D. All village sewer users within the corporate limits of the village having a direct or
indirect connection with the village sewer and water mains or pipes: $2.09 per
1,000 gallons of water consumed or portion thereof.
All village sewer users within the corporate limits of the village having a direct or
indirect connection with the village's sewer mains or pipes but not with village water
mains or pipes: $5.40 utilization fee per month per dwelling unit.
All village sewer users outside the corporate limits of the village having a direct or
indirect connection with the village's water and sewer mains or pipes: $4.18 per
1,000 gallons of water consumed or portion thereof.
All village sewer users outside the corporate limits of the village having a direct or
indirect connection with the village's sewer mains or pipes, but not with village
water mains or pipes: $10.80 utilization fee per month per unit dwelling.
The Base Fee per bill for sewer users within the village shall be $5.00. The Base
Fee per bill for sewer users outside the village shall be $10.00.
SECTION THREE: that this Ordinance shall be in full force and effect from and after its
passage, approval and publication in pamphlet form in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this day of 2017.
ATTEST:
Karen Agoranos, Village Clerk
Iv
Arlene A. Juracek, Mayor