East Dundee trustees all agreed that increasing the village’s water rate by 20% next year is too high, but are split over how much the rate should increase.
Village staff made the recommendation to increase the water rate, which goes into the Water & Sewer Fund that’s solely supported by user fees, by 20% to help fund an estimated $13.5 million in capital projects over the next five to seven years. The sewer fee is not being increased.
A major portion of the capital projects is earmarked for the village’s lead service line replacement program. The estimated cost of that program is $7 million. Municipalities are mandated by state and federal law to replace lead service lines. East Dundee, like many other cities and villages, decided to cover the cost of replacements rather than charge residents.
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Consultants recommended increasing the water rate by 10% each year until 2032. However, last year, the board decided on a 5.5% increase. The 20% proposed increase would help the village stay on track to fund the projects, officials said.
“We are asking the board to provide a recommendation (for) an increase in 2027,” Brandiss West, finance and administrative services director, said at the Oct. 5 village board meeting.
West provided some alternatives, including increasing the rate by a smaller percentage. The two options trustees debated were a 5.5% or 10% increase for 2027.
Trustee Matt Oclon supported a 10% increase.
“It almost seems like this is what it takes to bandage our services year after year,” Oclon said. “I don’t want to see water rates go up, but I don’t want to see our services get worse.”
The number one complaint from residents is the water, said Oclon, who often sees brown water coming from the faucet in his home.
“I want to see us look long-term to (see) how we get better water,” Oclon said.
“I think we need to get these projects done. We can’t keep kicking this can down the road,” Trustee Ryan Guma said. He supports a 10% increase.
Trustee Kathleen Mahony also leaned toward a 10% increase, but the three other board members, Tricia Saviano, Scott Kunze, and Andy Sauder, favored a 5.5% increase in water fees.
“I think it’s a hard time to raise it that much,” Saviano said.
“I just have a real hard time justifying doubling our water rate in seven years. It’s just crazy,” Kunze said. “We are already very high” compared to other places, he said.
There’s no chance the rates will ever come down after the village completes all the water infrastructure projects, Kunze said.
Kunze said he thinks the village should do a bond sale then increase water rates reasonably, not double them.
A bond issuance could be used to help fund the lead service line replacements.
“I like the idea of a bond. I guess what bothers me is we have the same argument every year,” said Oclon, about increasing water rates.
West said the village is applying for an Illinois Environmental Protection Agency loan for the lead service line replacements and could begin looking into the possibility of a bond sale.
The board is planning more discussions on the water rate increase as it continues preparing for the 2027 budget. If the split on the board continues, the final vote will come down to Village President Dan Pearson.
Gloria Casas isa freelance reporter for The Elgin Courier-News.