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Elmhurst budget draft includes $7M potable water project and proposed rate adjustments to cover rising costs
Summary
City staff told the committee the 2026 draft budget includes a roughly $7 million potable water pumping station project, higher purchases from the DuPage Water Commission and proposed fee changes (capital recovery/CERC and a phosphorus fee) to help cover debt service and pass-through costs.
City staff told the Elmhurst City Council committee of the whole on Oct. 20 that higher purchased water costs and planned capital projects are driving proposed changes in the municipal utility fund for 2026.
Stan (Director Balicki, transcript identification) and Director Coyle (finance) described a proposed potable water pumping stations and reservoir update project anticipated to begin in 2026, estimated at about $7,000,000. The project scope has been reduced from an earlier planning estimate, staff said, following an engineering review that prioritized mechanical and systems upgrades over full facility replacements.
The draft budget also reflects a projected $944,000 increase in the cost of water purchased from the DuPage Water Commission — driven by a 5%/3% step increase tied to commission rate changes — and staff noted the city has been subsidizing the DuPage pass‑through rate earlier in 2025. Director Coyle said the budget package includes three proposed rate/fee changes for the municipal utility fund that would be reviewed by the finance committee: 1) pass the DuPage commodity increase through to customers (ending the partial subsidy), 2) an adjustment to the capital recovery charge (CERC) to help fund potable‑water debt service, and 3) a proposed phosphorus fee tied to sewer bundle‑5 debt service.
Other budget items cited by staff included a debt service allocation of $238,550 tied to an IEPA loan for potable water work, a new Central Fleet Fund allocation of roughly $317,000 for vehicle replacement, and a projected $140,000 increase in depreciation that reflects recent and planned capital additions.
Water‑side compliance and operating costs also rose in staff descriptions: postage and printing costs were identified for the consumer confidence (water quality) report — staff said new rules will require mailing the report twice a year and additional lead‑and‑copper reporting — and electricity and disposal costs were cited as inflationary pressures. Director Balicki said there will be a roughly $23,000 electricity increase reflected in the water budget after a 45% jump in electricity pricing during June of the current year and a further projected 4% increase for 2026.
On sewer and wastewater, staff flagged a $46,000 replacement grinder at the Sailor and Jackson lift station and higher contracted repair and professional‑services costs tied to mandated programs (for example, fats‑oils‑and‑grease and pretreatment), as well as a PFAS inventory requirement under the city’s NPDES permit that will require outside services.
Why it matters: staff characterized these changes as largely driven by external factors — DuPage Water Commission rate increases, regulatory reporting requirements (lead/copper, consumer confidence report frequency, PFAS inventory) and inflationary pressures on electricity and disposal — rather than new staffing. Council members asked for follow‑up documentation on how rate changes were calculated and where proposed fee changes would appear in the published budget schedules.
Next steps: the finance committee will review the proposed fee changes and finalize any rate recommendations to council; staff emphasized that any rate changes would require formal committee and council approval before taking effect.
