Submitted By
Robert Sproule, Public Works Director
Reviewed By
Ahmad M. Zayyad, Deputy Village Manager / Interim Director of Development Customer Services
Agenda Item Title
Title
Second Reading and Adoption of An Ordinance Amending Chapter 26 ("Water"), Article 2 ("Charges and Collections"), Section 26-2-2 ("Meter Charges") of the Oak Park Village Code Regarding the Rates for Water and Sewer Services
End
Overview
Overview
This is the second reading of an Ordinance which proposes to change the fee charged for Water and Sewer services for 2024. Staff proposes to adjust the 2024 Water & Sewer rate according to the estimated Consumer Price Index. The rate is estimated at four (4) percent.
End
Recommendation
Recommendation
Adopt the Ordinance.
Background
In 2019, Baxter & Woodman provided a Water & Sewer Rate Study which provided a five-year view of the projected Water & Sewer Enterprise Fund through 2024. The projection included the current position of fund balance, at the time, as well as the proposed revenues and expenditures, including the Capital Improvement Program. Rates were based on the volume of water used (metered) per 1,000 gallons plus a fixed monthly charge for the size of water meter the customer has on their premises. The results of the Study and proposed fees were reviewed at a Finance Committee meeting on October 24, 2019. Three options were provided. Staff recommended and on November 18, 2019, the Village Board approved Option 3 which provided the most stable operating reserve balance (ORD 19-120). Option 3 included fixed rate increases and volumetric increases of 3%/3%/2%/1%/1% over the five-year period from 2020 through 2024.
It was noted that if expenditures change from those estimated, the Village Board could re-visit the rate structure for future years. The 2019 Water & Rate Study expenditures were based on an estimated annual two and a half percent (2.5%) increase to City of Chicago water rates over the next five years. Un...
Click here for full text