back into productive use and benefiting the community.
This Ordinance was adopted.
XV. Regular Agenda
M.
A Presentation on Water & Sewer Rate Design Alternatives and Their
Potential Impacts on Residential and Commercial Water Bills
Resident Michelle S. described receiving notice that residents would be
required to pay $7,500-$12,000 to replace lead service lines on their
block, expressing concern that such a large, unexpected cost is unrealistic
amid rising living expenses and property taxes. Citing numerous cities that
fully cover lead line replacement through public funding, she urged the
Village to find alternatives so the financial burden does not fall solely on
current homeowners for an essential public health necessity.
Resident Kristin M. reiterated concerns about the high and immediate cost
of lead service line replacement, emphasizing that the burden is
inequitable and out of step with how other communities handle such
projects. She urged the Village to improve communication, ensure fairness
across neighborhoods, prioritize support for low and fixed income
residents, and explore reimbursement or grant options so the financial
impact does not fall solely on affected homeowners this summer.
Public Works Director Robert Sproule outlined three items requiring Board
feedback that could affect the upcoming five year water and sewer rate
plan: potential changes to rate structure methodology, updated state and
federal lead line regulations and cost responsibilities, and a proposed pilot
program to support private side lead service line replacement tied to the
2026 project. He emphasized that the Board’s direction is needed to
determine how costs should be allocated and incorporated into future rate
planning. He explained that the discussion is solely about rate design, not
total revenue-future capital needs (including lead service line replacement)
will determine the revenue target, and the rate structure will simply
determine how that cost is shared across users. He explained that the
Board must first signal whether it wants an inclining block structure and
whether to differentiate by user class so staff can prepare accurate models
for the Finance Committee.
NewGen Partner Eric Callocchia presented an overview of the water and
sewer rate study, explaining the project’s goals, scope, and the need for
Board feedback on potential rate structure alternatives. He reviewed the
previous recommendations adopted for 2026 and outlined the Phase 2
focus on creating a five year rate plan and evaluating new rate
methodologies with an emphasis on affordability. He highlighted key
considerations in rate design, including equity, implementation,
conservation, customer impacts, and financial sufficiency. He emphasized
that current industry tools for equity are limited to usage and system
demand characteristics, noting that true DEI based equity extends beyond