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First Reading and Approval 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 for 2027 through 2031
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Introduction
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This item advances implementation of the Village Board selected increasing block rate water and sewer rate structure for 2027 through 2031, including a two-tier water rate with a 10,000-gallon quarterly threshold, a uniform sewer rate, and revised monthly service charges.
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Recommended Action
Adopt the ordinance.
Prior Board Action
September 15, 2026: MOT 26-221, concerning the preferred 2027–2031 water and sewer rate structure and preparation of an ordinance amendment. The Board selected Alternative 3, the increasing block rate, as reported by staff for preparation of this item.
Background
The Village has maintained a healthy Water & Sewer Fund balance in recent years. However, inflation, anticipated regulatory requirements, and aging infrastructure are increasing costs, creating a projected gap between necessary expenditures and anticipated revenues. NewGen Strategies and Solutions worked with Village staff to identify three financial goals for the 2027–2031 rate plan:
Maintain a fund balance consistent with industry best practices.
Stabilize cash flow within the Water & Sewer Fund.
Gradually increase fixed revenue recovery to approximately 20 percent over ten years.
Following the initial fiscal year 2026 rate recommendation, staff asked NewGen to evaluate alternative rate structures that would generate the revenue needed to support the system while advancing the Village’s goals for affordability, equity, and sustainability.
The Village Board selected Alternative 3, increasing block rate, which charges a lower water rate for the first 10,000 gallons used each quarter. Only water used above that amount is charged at the higher rate. Sewer charges will continue to use the same rate...
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