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A Presentation on Water & Sewer Rate Design Alternatives and Their Potential Impacts on Residential and Commercial Water Bills
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Introduction
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Following the presentation on the initial phase of the 2025 Water & Sewer Rate Study, NewGen Strategies and Solutions collected feedback from the Finance Committee on rate methodology and billing format strategies for the future. NewGen is returning with a presentation on the three requested rate structure alternatives in an effort to collect additional feedback from the Village Board. The additional feedback collected will be used to inform NewGen's recommendation for water and sewer rates for 2027-2030.
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Recommended Action
Village staff are not seeking Village Board action as part of this presentation.
Prior Board Action
The Village Board approved the water rate ordinance for 2026 in accordance with the initial recommendations from the 2025 Water & Sewer Rate Study on November 11, 2025 (ORD 25-197).
Background
Following the presentation on the initial phase of the 2025 Water & Sewer Rate Study, NewGen Strategies and Solutions collected feedback from the Finance Committee on rate methodology and billing format strategies for the future (MOT 25-231). NewGen is returning with a presentation on the three rate structure alternatives, that the Finance Committee requested to explore further, in an effort to collect additional feedback from the Village Board.
Those rate structure alternatives are:
1.) Volumetric usage charge coupled with a fixed rate charge based on meter size (existing).
2.) Residential water rates versus commercial water rates.
3.) Inclining water rate charge based on increased usage meant to promote water conservation.
NewGen will explore the advantages and disadvantages of these alternative rate structures and provide sample water bills to show the potential impacts of each rate alternative on both the average residential and commercial wat...
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