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A Motion to Approve a Preferred Water & Sewer Rate Structure and Rates for 2027 through 2031 and Direct Staff to Prepare the Necessary Ordinance Amendment
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Introduction
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Earlier this year, NewGen Strategies and Solutions provided both a presentation to the Village Board, as well as, the Finance Committee in order to gain feedback on proposed rate structure alternatives, rate methodology, and billing format strategies. Staff is now returning to the Village Board to secure formal direction on a preferred water and sewer rate structure in order to inform water and sewer rates for the 2027 through 2031 calendar years. Staff will return to the Board later this year for formal adoption of the proposed rate structure.
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Recommended Action
Approve the Motion.
Prior Board Action
There is no prior Village 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:
Maintain a minimum Water & Sewer fund balance consistent with industry best practices.
Stabilize cash flow within the Water & Sewer fund.
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 and the Finance Committee in mid-July, NewGen Strategies and Solutions will present three water and sewer rate structures and ra...
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