Submitted By
Rob Sproule, Public Works Director
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
First Reading of An Ordinance Amending Chapter 26 (“Water”), Article 2 (“Charges and Collections”) of the Oak Park Village Code Regarding the Rates for Water and Sewer Services
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Overview
Overview
This is the first reading of an Ordinance which proposes to change the fee charged for Water and Sewer services for 2025. Staff proposes to adjust the 2025 Water & Sewer rate according to the estimated Consumer Price Index. The rate is estimated at four percent (4%).
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Recommendation
Recommendation
This is a First Reading only.
Background
In advance of a Water Rate Study in 2025 to inform the Village Board on water and sewer rates for a five-year period beginning in 2026, Staff recommend a rate increase of four percent (4%) for 2025. The proposed rate increase is based on an estimated increased expense for the Village’s cost to purchase water from the City of Chicago in 2025. The City of Chicago typically ties its rate increase to the average change in the Consumer Price Index for the previous year. Staff estimate this rate to fall between 3% and 4% for 2025. In addition, the American Water Works Association recommends an operating reserve of twenty-five percent (25%) of the annual operating expenses. For the Village of Oak Park that roughly equates to an operating reserve balance goal of two to three million dollars ($2-3M).
Based on proposed expenditures for 2025 and a staff-recommended rate increase of four percent (4%) to the Water and Sewer rate, the Village will maintain a sufficient fund balance for our Water & Sewer fund.
Fiscal Impact
Fees collected for these services fund the Water & Sewer Fund.
DEI Impact
N/A.
Alternatives
The Board can delay to gain additional information.
Previous Board Action
Fees for Water & Sewer rates were last increased on January 1, 2024, which were approved by the Village Board in November 2023 (ORD 23-110).
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
The Village Board may review the rates annually.
Intergovernmental Cooperation Opportunities
The Village is the only Public Water Supplier for Water and Sewer within the Village Corporate limits.