Rates Hikes and How Much It Will Cost at April 2 La Grange Board Meeting

The Village of La Grange Board of Trustees will meet April 2 at 7:30 p.m. at ., to discuss an ongoing issue with the village's water meters, pumping station repairs, and how the village is going to pay for it all.

Background:

, trustees heard from village staff about the need to update outdated water meters in La Grange. Public Works Director Ryan Gillingham told trustees at the meeting that in 2011 the Village lost an estimated 150 million gallons of water. The culprit was the Village's outdated water meters, which were last replaced in the late '80s. The loss becomes an even more important issue to the village due to a significant increase from the City of Chicago in the water rate.

Additionally, Gillingham told trustees, technical upgrades were needed at the Village's East Avenue Pumping Station that must be done for it to continue to operate well and safely.

At the Workshop, trustees largely agreed that new meters and the pumping station repairs were necessary improvements, but could not agree on how to pay for the proposal.

Village Finance Director Lou Cipparrone told trustees that staff would seek to bundle the $1.3 million cost of the new meters with a proposal to make necessary upgrades at the Village's East Avenue Pumping Station and include the increase in water rates from Chicago into one rate increase. 

The result would be a 15 percent increase in 2012 on village water rates, followed by a 7.5 percent annual increase for the next three years. Residents would likely see a $100 increase on their water bills in 2012 and about $65 annually for the following years increases.

Trustee Michael Horvath asked staff for a more detailed analysis of the 15 percent rate increase, while Trustee Mark Kuchler said he was concerned about staff's proposal to pay for the project with bonds, and abandoning the Village's traditional pay-as-you-go strategy.

April 2 Meeting:

At tonight's meeting, staff will appeal to board members to forego a pay-as-you-go strategy, according to Village documents.

A pay-as-you-go plan, staff said in a memo to trustees, would take five to six years to complete and would delay resolving the water accountability issue where some residents are not being fully charged for their water use, due to the aging meters. Additionally, the cost of the meters will increase if the Village decides not to buy in bulk.

In conclusion, village staff will be recommending again that the village pay for the project using a 20-year G.O. alternate revenue bond, with an effort to retire the bond as quickly as possible.

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