Water and Sewer Rate Increase

Water Rates Raised Over Next 5 Years for Improvement Work
Posted on 10/22/2019
construction of water and sewer project

To continue funding needed infrastructure improvements to the water and sewer system, the Village’s water and sewer rate will be raised an average of 5.7% per year over the next five years starting with bills mailed after January 1, 2020.

The Village also plans to allocate $8.5 million of a bond issue toward the ongoing water main replacement program. A variety of capital needs can be funded through a potential bond issue. In 2020, the Village has the opportunity to issue a bond without increasing the Village’s debt service.

The new five-year rate adjustment enables the Village to continue its program of replacing water mains of its 260-mile system and to continue maintenance work on its 11 water storage tanks. The average age of the Village’s water mains is 65 years old, which results in increased water main breaks and service interruptions to residents. 

In addition to water main replacement, the new water and sewer rate adjustment plan will fund the repair and repainting of water tanks, upgrade the computer system that monitors and controls the water and sewer systems, and fund other infrastructure improvements to the water and sewer infrastructure.

Back in September of 2014, the Village Board established a five-year plan of increasing the water rates through the end of December 2019 to fund water sewer system improvements. These increases allowed the Village to perform necessary maintenance on the Village’s water tanks and significantly increased the amount of water mains replaced each year. However, due to decreased water usage demand and water conservation efforts by the community, the revenue plan established in 2014 fell short of adequately funding all of the needed infrastructure improvements to the system.

The Village’s current combined water and sewer rate is $8.04 per 1,000 gallons, which is lower than many nearby communities. With the recently approved increases, water and sewer bills will go up, starting next year, by 8.5%, followed by 5% in each of the following four years.  Increases will take effect with the January billing of each year.

A recent survey compared the new water and sewer rates with 11 comparable municipalities. Arlington Heights ranked 6th for water and sewer costs of an average-sized home.