Water and sewer rates in Franklin Park are going up.
The increase is part of the village’s push to get low-interest state loans for main replacements in the Reuter subdivision.
All trustees present at the March 19 village board meeting voted in favor of the rate hike, which was approved as part of the consent agenda. Trustee Karen Special was absent.
“Overall, our sales are down about 20 percent,” village engineer David Talbott told the board. “… Our revenue has been lagging.”
Mayor Barrett Pedersen attributed the drop in water use to the redevelopment of industrial chilling mechanisms, which no longer use water.
The rate increase is expected to generate $1.1 million in revenue in its first year, according to Comptroller David Gonzalez.
Effective immediately, water rates will jump from $6.44 to $7.61 per 100 cubic feet of water used monthly up to 900 cubic feet, and from $8.03 to $9.49 per 100 cubic feet above 900, according to village documents. The village’s minimum monthly charge will spike from $13.10 to $15.22.
Sewer rates will go from $3.86 to $4.57 per 100 cubic feet of water used monthly up to 900 cubic feet, and from $4.81 to $5.69 per 100 cubic feet above 900, with a minimum charge of $9.14, up from $7.86, village documents state.
The rates will be used to calculate water and sewer costs starting with the March 1 billing cycle.
Qualifying disabled and low-income residents can pay a reduced rate of 25 percent of their monthly water and sewer bills, with proof of eligibility.
Water and sewer rates are set to increase again on June 1, 2019, when they will go up 3 percent, plus the annual percent increase in the rate charged to the village by the city of Chicago, according to village documents. The 3 percent hike and the annual increase from Chicago will be applied to the village’s water and sewer rates each year.
Franklin Park is raising water and sewer rates in part so it can qualify to apply for low-interest state loans to fund work on the village’s Reuter subdivision project, Pedersen said. To qualify, the village must demonstrate it is taking in 1.25 times more water and sewer revenue than its operating costs.
The village typically approves water and sewer rate increases in September, but it passed the new rates March 19 in order to apply for the loans before all 2018 funds are awarded to other governments, Pedersen said.
Franklin Park will apply for two 20-year loans: a sewer loan just under $2 million and a water loan that’s about $1.5 million, Talbott said. The loan rate is 1.75 percent, which would save the village $2.4 million, according to Gonzalez.
The Reuter subdivision, built after World War II, is set to get a full main and road rebuild, Pedersen said. The village hopes the low-interest state loan will fund the water and sewer portion of the project.
“When we looked at the Reuter subdivision, everything was wrong in that subdivision,” Talbott said. “… The sewer system’s in bad shape.”
Franklin Park’s pipes are, on average, more than 70 years old, and have a life expectancy of 80 years, according to Pedersen.
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The total cost of the Reuter subdivision project, which also includes the area south of the subdivision, is estimated at $10 million to $14 million, Talbott said.
Streets affected include a portion of Calwagner Street, Reuter Avenue, Johanna Avenue, Atlantic Street, Leona Street, Richard Avenue, Sonia Lane, Nona Street, Sheila Street, Nevada Avenue and Shirley Lane.
The seven-year undertaking is in its third year.
Anna Bybee-Schier is a freelancer.