Carol Stream staff recommend 4% water and sewer rate increase to fund capital upgrades and AMI meter rollout

Finance Director John Bay told the Village of Carol Stream board at a budget workshop that staff will recommend a 4% increase in water and sewer rates, effective May 1, to support operations and planned capital investments for FY2027.

Bay said the water and sewer fund is principally supported by consumption charges — about 91% of next year’s revenue — and that the village must balance near‑term operating needs with long‑term asset replacement. "The only way we can really address rising costs is through regular rate increases," Bay said, adding that the proposed 4% increase is intended to preserve fund health while moving forward on necessary projects.

The FY2027 proposal reflects roughly $19.1 million in water and sewer spending and includes one‑time transfers from general fund reserves. Bay noted a $4.29 million transfer last year and proposed an additional $4.36 million transfer to assist capital work, but warned that such transfers should not be used to supplant routine operating expenses.

Staff outlined several major capital priorities. Brad, a public works staff presenter, described an estimated $11.3 million headworks and screw‑pump replacement at the wastewater reclamation facility, a multi‑year project with phased construction to maintain operations during upgrades. Brad said the project is about 30% through design, with a bid opening expected in October and substantial completion targeted for May 2028.

An electrical assessment of the wastewater plant identified urgent upgrades; staff proposed about $780,000 in electrical improvements in FY2027 to address aging switchboards, motor control centers and power distribution panels. Bay said these assessments inform a 10‑year capital improvement program totaling approximately $40 million for water and sewer infrastructure.

Resilience measures drew attention: staff reported three backup wells that would sustain operations if DuPage Water Commission supply were disrupted. An assessment showed the wells producing at roughly 66%–90% of expected capacity; staff moved refurbishment for all three wells into FY2027 so the wells would be reliable if needed.

On the meter program, staff summarized a multi‑year advanced metering infrastructure (AMI) rollout. Fullerton Tower antenna installation is scheduled and staff plan pilot smart points to confirm coverage before broad deployment. Bay said the first year involves larger commodity purchases for meters and one‑time data/network startup costs; the budget includes funding for both meter procurement and initial software/integration.

Bay also described the annual leak detection program: contractors located 24 leaks in the most recent survey, with an estimated loss of about 17 million gallons (roughly 1–1.5% of annual purchases) and an estimated billed value near $4 million; the detection contract cost about $23,000. Bay characterized the program as a high return on investment that helps maintain billed percentage near 94%.

Staff noted looming regulatory exposure on phosphorus limits. The village participated in a regional DRSCW phosphorus plan submitted to the Illinois Environmental Protection Agency (IEPA); Bay said IEPA permit language is beginning to reflect that plan. Carol Stream’s permit expires in 2027 and staff warned that future phosphorus limits could require multi‑million‑dollar treatments, with compliance planning expected to accelerate after permit renewal.

To illustrate affordability, Bay said a 4% increase would amount to about $2.95 per month for a typical customer using 5,000 gallons of water a month. He also presented a 10‑year cash‑flow model that assumes 4% annual increases and shows reserves drawn down in the near term to fund capital — a pattern staff said is acceptable given the scale and timing of one‑time projects.

Bay said a draft village budget will be posted on the village website this Friday (the 20th) and that the board will hold a public hearing and adoption meeting in the near term. The workshop ended after a motion to adjourn was moved and seconded and the clerk called the roll.