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Village of Oak Park Water and Sewer Rate Study for 2027-2031
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Introduction
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In early May, NewGen Strategies and Solutions provided a presentation on three rate structure alternatives to collect additional feedback from the Village Board on rate methodology and billing format strategies. NewGen is returning to the Finance Committee with a presentation and formal recommendation on rate structure and water and sewer rates for 2027 through 2031.
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Recommended Action
Review, provide feedback, and propose a rate structure recommendation to the Village Board for further discussion and action in September 2026.
Prior Board Action
There is no prior Board action associated with this item.
Background
While the Village has been able to maintain a healthy Water & Sewer fund balance over the past few years, it is clear that rising costs due to inflation, forthcoming regulatory mandates, and aging infrastructure are quickly putting the Village on a path towards necessary expenditures outpacing anticipated revenues. NewGen assisted Village staff in identifying three key financial goals for 2027 through 2031:
1. Maintain a minimum Water & Sewer fund balance consistent with industry best practices.
2. Stabilize cash flow within the Water & Sewer fund.
3. Increase fixed revenue recovery to approximately 20 percent.
Following an initial rate recommendation for fiscal year 2026, Village staff requested that NewGen explore alternative rate structures that allow the Village to recoup the same revenue while meeting additional Village goals related to affordability, equity, and sustainability.
Following feedback from the Village Board in early May 2026, NewGen Strategies and Solutions will present two water and sewer rate structures and rate recommendations to the Finance Committee, impacting fiscal years 2027 through 2031. The existing rate structure, volumetric coupled with a fixed charge, and one alternative rate struct...
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