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Water and Sewer Rate
Increases
Village of Antioch, Water and Sewer Rate Increase Notice
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The Village Board recently approved an increase in
the water and sewer rates for the
Village
of Antioch.
This is the first significant increase to water rates in more
than 15 years. There are
two main factors that necessitated this rate adjustment.
The first factor is the new debt incurred from a loan to
build the waste water treatment plant.
This project was essential due to the rapid growth of the
Village during the last two decades and the poor condition of the
nearly 80 year old plant.
The second factor affecting rates is the decline in water
usage from foreclosures associated with the economic downturn.
This has produced a lack of revenue that has severely eroded
the Villages reserves and forced the Village into deficit spending
to properly operate and maintain the systems. Adequate funding of
water and sewer operations is critical to protect public health,
property values and the environment.
The Village Board has looked at every way to improve
efficiency and held off on any rate increase as long as it could in
hopes that economic conditions would recover.
We recognize that increasing the rates will impact all of us
during painful economic times, but this was necessary to prevent a
default on our loan and to assure the long term support of our water
and sewer system. The
new rates will be billed starting in October.
The average bi-monthly residential customer bill will go from
$60.00 to $90.00.
Frequently
Asked Questions
Q - What is
an enterprise fund?
A In
governmental accounting, it is a fund that provides goods or
services to the public for a fee that makes the entity self
supporting.
An example is a government owned
utility.
This means that the revenue collected
from the users of the system pay proportionally to their usage for
operation, maintenance, debt service and replacement of the system.
There is no motivation for profit, thus
this system is used by government owned utilities to provide the
necessary services at the lowest possible rates.
Q Why is
the increase so large?
A The Village began a process to replace the largest component of
the system, the
Waste Water Treatment Facility
just before the economic downturn.
At the conception of the project, the
facility was in poor condition, and at the end of its useful life,
and unable to support the continued growth of the Village.
This resulted in the placement of the facility on the Illinois
Environmental Protection Agency (IEPA) critical list.
The economic projections for new
commercial growth and continued housing development did not
materialize.
At the same time, the economy
deteriorated to where the system actually lost users due to
foreclosures and closed businesses.
As the debt burden increased, the usage
decreased bringing less revenue than projected.
This marks the third year of declining
usage and revenue.
Q Will the
rates change as more users help fund the debt service and pay the
costs to operate the system?
A An evaluation of the enterprise fund will occur on a regular
basis.
If it is determined that the water and
sewer rates are producing more revenue than is required to properly
operate, maintain and replace the system, then a lower rate would be
established.
Q - What if
we do not raise the rates?
A The enterprise fund will not have the ability to meet its debt
commitments, cover operations and maintenance or fund any
improvements to the system.
In the short term, the Village will be
unable to pay its debt and will go into default. This will result in
the state withholding tax revenues due to the Village to recover the
payments. Ultimately the system components will fail, the Village
will not be able to replace them and a much larger increase will be
needed to bring the system into compliance to protect the population
that is served and the environment that surrounds us.
Q
How does the Village of Antioch
compare to other communities?
A Data has been collected that shows the sewer and water rates in
Antioch
at the mid-range of neighboring communities with comparable
wastewater treatment facilities.
The new facility will have a useful life
of 25-50 years and will provide service to the community and help
protect the environment without major investments or repairs,
however it results in
Antioch
having the highest debt of the communities surveyed.
See link below for survey results.
Q What
increases will we see in the future?
A The large increase at this time is to bring the rates to
adequate funding levels.
Annual increases of 3% will be automatic
so that the Village rates do not fall behind again, resulting in
large increases down the road.
Rate
reviews will be made on a regular basis to ensure that the rates are
covering expenses and obligations.
Q When
will I see the increase on my water and sewer bill?
A The new rate ordinance goes into effect
August 1, 2011. Customers will see the increase on
their September/October bills which are mailed out in November.
Sprinkling accounts will be billed at the end of September at
the old rates for 2011.
Q
Im on a fixed income.
What if I cant afford to pay my bill?
Does the Village offer a budget plan?
A In the enterprise system, to keep the system self-supporting all
users must pay their proportionate share.
The Village can offer to give you
suggestions
on water conservation that will
allow you to keep your bill low.
Q
Are there different rates depending on where I live?
How do I know what my rate will be?
A The new ordinance provides for consistent rates throughout
the Village. There is an east and west service area. The
east area is located east of Deep Lake Road and is treated by Lake
County. The west area is west of Deep Lake Road and is treated by
the new Antioch facility. Please see rate spreadsheets below
for more detailed information.
Q Will I
still be able to get a sewer credit for filling my pool or watering
new sod/seedlings?
A If you live west of Deep Lake Road, a sewer credit will still
be available to residents filling their pool.
The appropriate forms MUST be completed,
and the homeowner will be responsible for reading their meter before
and after filling.
The
Village of Antioch
has a one time program
for watering fresh sod at new construction homes which qualify.
Please
call the Village Hall billing department at 847-395-1000 for more
information.
Separate meters may be purchased for
sprinkling systems, and customers will only be billed for water on
those meters.
For more information on purchasing a
separate meter, please call the Building and Zoning Department at
847-395-1000.
Links to
attached documents
Ordinance
Survey
Rate Spreadsheet (west of
Deep Lake Road)
Rate Spreadsheet (east of
Deep Lake Road)
Contact Us
Village of Antioch
874 Main Street
Antioch, IL 60002
Phone: 847-395-1000
Fax: 847-395-1920
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