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Zion council approves utility rate increases to address aging water, sewer and garbage systems

Zion City Council · September 3, 2024
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Summary

The Zion City Council approved amendments to the municipal code raising garbage, water and sewer rates, citing decades-old mains, rising repair costs and a multi-year waste-fund deficit. The changes take effect Oct. 1 (garbage) with water billing impacts appearing in January.

The Zion City Council voted to amend the municipal code to raise garbage, water and sewer rates to help cover repairs and aging infrastructure.

Administrator Naval and Director Roberts told councilors the city—s water distribution system includes roughly 113 miles of pipe, about 21% of which is 80–100 years old, and that recent material and labor costs for water-main replacement have increased by roughly 40%–60%. To address mounting costs and a multi-year waste-fund deficit, staff proposed a multi-part increase that council approved after discussion.

Under the ordinance, quarterly garbage billing for a residential account will increase to $98 beginning Oct. 1, a change Naval said equates to about $8.67 per month. The proposed water rate was set at $12.13 per 1,000 gallons and the sewer rate at $2.43 per 1,000; the ordinance also ties $2.25 of the rate specifically to infrastructure work, Naval said. Water sold to customers outside Zion (for example, Beach Park residents) will increase to $13.13 per 1,000 gallons, $1.00 higher than the in-city rate. Naval estimated the combined water and sewer increase will raise an average household—s monthly bill by roughly $7 to just under $8.

Councilors pressed staff on related costs and external pressures. Director Roberts said the Lake County Water District recently increased its rates and that the district—s repair-and-replace (R&R) account had risen substantially, contributing to an effective water-cost increase he estimated near 33%–35%. Roberts said the city is pursuing a five-year IEPA loan that could total about $5 million, with up to roughly 18% of principal potentially forgiven, to support lead-service-line replacements; he added the city is 98% complete on an inventory showing only a few hundred lead services identified so far.

Roberts and Naval described leak-detection work and efforts to reduce apparent water loss, including plans to install a large meter at the city—s entry to improve redundancy and cross-check readings against the Lake County master meter. Roberts said the city replaces roughly three-quarters of a mile of main per year at current spend levels and estimated a decades-long replacement horizon without additional funding.

The rate ordinance was moved by Commissioner Fisher and seconded by Commissioner McDowell. Clerk roll-call entries in the transcript recorded affirmative votes after public Q&A and discussion; the mayor announced the motion carried. Naval noted that water billing is calculated retroactively, so the water-rate increase will appear on bills beginning in January because those statements cover the prior three months— usage (October–December).

The ordinance also designates $2.25 per thousand gallons of the new rate for infrastructure work and is intended to stabilize rates on a multi-year schedule so the city does not wait many years between adjustments. Councilors asked staff to continue seeking grant and loan funding to reduce the long-term burden on residents.

Next steps: the ordinance takes effect as provided in the municipal code; staff will publish bill inserts and update the city website with timing and customer-impact examples so residents can anticipate the January billing change for water and sewer.