Elmwood board approves 52% sewer rate hike to shore up utility finances

The Elmwood Village Board voted on Jan. 12 to increase the village sewer base rate to $60.85, up from $40.03, following a presentation from consultant firm Ehlers that the utility is not financially sustainable under the current rate.

Ehlers told the Board the Sewer Utility has an outstanding interfund borrowing of about $258,376 from the General Fund and lacks adequate revenue to cover unexpected repairs or major system failures. The consultant presented a rate study recommending a single, immediate 52% base-rate increase rather than smaller incremental hikes that would still leave the utility underfunded.

“Under current rates, the Sewer Utility cannot remain financially afloat and would not have sufficient funds to address unexpected repairs or major system failures,” the consultant reported, according to meeting minutes. Trustee Dawn Toth moved to adopt Ehlers’ recommendation; Trustee Pam Marson seconded. A roll call vote carried, approving the 52% increase.

Board members discussed alternatives, including multi-year incremental increases, but the consultant and trustees noted those options would result in a higher final rate over time and would not address the immediate funding shortfall. The minutes record that the single-step increase was chosen to restore sustainability and reduce future borrowing from the General Fund.

The Board did not specify a date when the new rate takes effect in the meeting record. The minutes also note that the Village will need to monitor the Sewer Utility’s finances to ensure the increased revenue covers planned operations and unexpected capital needs.