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Board warns water fund insolvent; considers infrastructure charge and phased rate hikes
Summary
Board members said the water fund is deeply underfunded and discussed replacing the 8,000‑gallon minimum with a fixed infrastructure charge plus lower per‑gallon marginal rates, and phased annual increases to restore solvency.
Board members and staff told the finance meeting the village's water fund is running a significant deficit and that most system costs are fixed rather than variable.
"The amount of money that's coming into the water fund has to go up," the chair (Chair) said. He argued a separate monthly infrastructure charge that approximates long‑term fixed costs, combined with a lower marginal water rate, is likely a fairer approach than the current large consumption minimum.
Board members debated how quickly to raise revenues; the chair suggested steady, scheduled increases over several years (for example, a modest annual percentage increase for 7–10 years) to avoid the shock of a single large hike, and warned the village is at risk of being unable to fund essential repairs otherwise.
No formal rate change was adopted; the board directed the finance committee and staff to draft a formal proposal for the next meeting that sets recommended infrastructure charge amounts and a phased increase schedule.
