East Dundee consultants propose steep water increases to fund $7.9M capital plan

Consultants from Baxter & Woodman told the East Dundee Village Board on Nov. 4 that the village’s current 3% annual rate escalation will not cover about $7.9 million in known water and sewer capital needs and recommended two main rate paths to close the gap.

Baxter & Woodman senior engineer Mark Seifert said the eight‑year capital plan contains roughly $6.37 million of water projects and about $800,000 of sewer work. Major individual items include a Well 6 rehabilitation (budgeted at $550,000 in fiscal 2028), a proposed $500,000 lead service line program in 2025, a $900,000 water tower painting in 2027 and standpipe repairs estimated at $700,000 in 2026.

"The amount of capital projects and infrastructure coming down the line" means "the baseline of 3% only is not going to be able to handle it," Seifert said, arguing that the village must raise revenue to fully fund the planned work.

Two scenarios were presented as the board’s leading options. Scenario 1a would apply an annual 10% increase to the water volumetric rate (this figure includes the currently scheduled 3%, i.e., an additional roughly 7% above that schedule); sewer rates would remain at the planned 3% because identified sewer capital needs are smaller. Under that approach Baxter & Woodman showed the village could fully fund the capital program and meet debt obligations tied to its IEPA/IUP loan.

Scenario 2 would adopt a three‑tier volumetric rate (0–10,000 gallons; 10,000–500,000 gallons; above 500,000 gallons bimonthly) combined with modest initial increases to fixed meter charges. Consultants said most residential customers fall into the first tier and that, although the tiered plan is costlier in the near term for some users, it projects to produce lower average residential bills by 2032.

Trustees pushed on distribution‑side quality issues and lead service‑line policy. Trustee comments and staff presentation stressed the village currently meets Illinois EPA standards: "We meet all IEPA compliance standards. We don't have a violation," a staff member said. Board members nonetheless said residents report poorer water quality at taps and asked about studies and mains replacement; staff proposed a treatment plant study and targeted water main replacements to address distribution‑age issues.

Board members also debated funding choices for lead service line replacements. One trustee flagged that other villages are contemplating 20%–40% increases; another said East Dundee is looking at a 10% path and urged the board to consider whether the water/sewer fund should be self‑sustaining or whether to subsidize replacements from other funds.

Sample billing examples showed a typical 10,000‑gallon bimonthly residential customer would see a bimonthly bill of roughly $202 under Scenario 1a and about $206 under Scenario 2 in the first year. Consultants emphasized comparisons with neighboring municipalities are not fully comparable because peer jurisdictions may have planned increases not reflected in the slide deck.

No formal rate ordinance was adopted at the meeting. Consultants asked the board to identify a preferred scenario and "direct staff to bring back an order for adoption," but the board deferred formal action and tied next steps to ongoing budget conversations.

What's next: staff will refine cost estimates, pursue available grant opportunities for lead replacements, and return with an ordinance or adoption order if the board signals a preferred scenario. The water and sewer fund implications will also be folded into final decisions on the 2025 budget.