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Highland Park officials unveil water-rate study proposing $40-to-$50 base rate
Summary
Village staff presented a water-rate study proposing a base water charge increase from $40 to $50 and usage "block" rate increases; commissioners were asked to review the study and told any new rates could take effect Oct. 1, 2025 at the commission's direction.
The Village Commission of Highland Park heard a presentation of a Water Rate Study on July 23 that recommends raising the monthly base water rate from $40 to $50 and adjusting usage "blocks" to boost revenue for the enterprise fund. City Manager Ric Busbee said the study compares current annual enterprise revenue with projected income under the proposed rates and recommends including a 3% Consumer Price Index escalation each year.
"Costs are going up in general, and we must respond," Busbee said, explaining it has been about 16 years since the village last adjusted water rates. He said that if the village had applied a 3% CPI increase each year since the last change the base rate would have risen roughly 45%; the single-year proposal represents about a 25% increase from the current $40 base.
Commissioner Amanda Updike told staff the 3% CPI increase built into the study "would be helpful." Resident Mark Smith, who spoke during the manager's report, said the increase "is needed." Busbee invited commissioners to review the full study and contact him with questions; he said the commission could make a decision for rates to take effect at the start of the new fiscal year, Oct. 1, 2025.
The study and materials were distributed to commissioners for further review; the commission did not adopt new rates at the July 23 meeting. Next steps include commissioners' individual review of the study and subsequent formal consideration if the commission places a rate ordinance or resolution on a future agenda.
