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Itasca board accepts water and sewer rate study, approves Alternative 4
Summary
The Village Board accepted a Stanley Consultants rate study for FY25–FY29 and approved Alternative 4, designed to preserve reserves and fund planned capital work; average residential water rates would rise about 1.5% and sewer rates about 4% starting in FY26 under the approved plan.
The Itasca Village Board voted Oct. 15 to accept a comprehensive water and sewer rate study prepared for fiscal years 2025–2029 and approved "Alternative 4," which village staff and consultants said best meets objectives to preserve operating and capital reserves and to finance planned infrastructure without immediate additional revenue collections from ratepayers.
Trustee Powers, who presented the Finance Committee item, said the study aims to maintain a 45‑day operating reserve in the water and sewer fund and to hold between $2 million and $3 million in the water and sewer capital fund. "The purpose of the study was to review the existing capital improvement program, fund balance policy, rate structure, and recommend alternatives that would ensure the long term sustainability of the water and sewer fund while minimizing the impact on residents," Powers said.
Village documents and the staff presentation said Alternative 4 more appropriately allocates revenues between water and sewer expenditures and would result in an average increase of about 1.5% to water bills and a roughly 4% increase in sewer charges for a typical user beginning in fiscal year 2026. The board previously discussed options at the June 18 meeting and, after reviewing alternatives, reached consensus to pursue Alternative 4.
The motion to accept the study and approve Alternative 4 passed by roll call; Trustee Maderas voted against the motion, and other members voted in favor or were absent as recorded.
Staff said the study’s objectives include fully funding upcoming phases of the Northside infrastructure project without collecting additional revenues from ratepayers, maintaining the stated reserve levels, and smoothing rate impacts across customer classes. The village will take the study report into its budgeting process for fiscal year 2025 and beyond, and staff said work on implementation details and customer notices will follow.
The study was prepared under a Stanley Consultants service agreement the village board previously approved; staff recommended waiving a second reading and accepting the report on Oct. 15.
