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Lake Forest approves first reading of 6.75% water-rate increase to support capital and operating needs
Summary
Finance staff proposed a 6.75% increase to variable and consumption-based water rates for FY2027, expected to generate roughly $617,000–$620,000 to fund near-term studies and capital work; council approved first reading 7–0.
The Lake Forest City Council granted first reading on Feb. 2 to a proposal to increase water and sewer rates by 6.75% for fiscal year 2027 to help cover rising operating costs and fund preliminary capital studies.
Finance Director Katie Skibbe and Director Thomas told the council the water fund is an enterprise fund that pays for operations and capital without support from property taxes. Director Thomas outlined system assets, saying Lake Forest maintains roughly 166 miles of water main (about 150 miles of distribution), five sanitary lift stations and storage including a 1.4 million‑gallon reservoir at the Waukegan and Wesley booster station. Thomas said average pipe age is about 53 years and noted clusters of problems in areas where lower‑quality ductile iron pipe was installed in the late 1980s and early 1990s.
Skibbe summarized cost pressures — chemicals, utilities and wages have climbed substantially — and presented a rate structure that uses a five‑year rolling average for revenue estimates. Staff estimated the 6.75% increase would generate additional revenue in the range of $617,000 to $620,000 per year; Skibbe said the $617,000 estimate covers near‑term capital and operating increases while she also referenced a presentation figure of $620,000. The proposal would fund two studies in FY27 (a transmission‑main study and a booster‑station evaluation) and support other operational increases at the treatment plant.
Council discussion focused on the fund structure and debt service treatment. A roll call recorded seven ayes, zero nays, and the motion to approve first reading carried. Staff said results of the technical and financial studies would return to council in the fall to inform longer‑term replacement and rate design decisions.
