Water and Sewer Rate Adjustment
In accordance with Illinois law, water and sewer treatment systems are operated as a stand alone portion of a city’s business operations. This means that the city’s waste water operation must be paid for by charges to users of these services. In other words, a city must by law bill users of it’s waste water operation an amount sufficient to cover the costs associated with their usage. After a review of the water & sewer utility’s income, expenses & debt rates have been adjusted by 2010 consumer price index, which is 1.6%
Failure of a city to maintain appropriate rate levels results in a short fall of monies necessary to operate the water & wastewater utility, but also prevents the city from not being eligible for state grant programs & loans. Currently, the City of Oregon rate is $52.06 per 6,000 gallons. The average in the region is $62.00 per 6,000 gallons. The average in the region is 20% higher than the Oregon rate.
Our rates are being raised by $.83 per 6,000 gallons. This increase will result in a total increase of $9.96 per year for a resident who uses 6,000 gallons of water per month.
Although, this matter is not subject to vote, it should be strongly endorsed by all Commissioners due to both practical and legal necessity. Our waste water treatment facility is extremely efficient in it’s operation; however, we do not have control over many expenses such as fuel and material costs which continue to increase. Additionally, we do not want to put ourselves in a position where we are not eligible to benefit from future state grant programs and loans because we have failed to properly fiscally manage our waste utility.
Patrick Wiesner
Public Property Commissioner