Water Rate Study finds $16.2M in capital needs, recommends 84% volumetric increase

The Village of Steger's Water Rate Study (May 2026) concluded the water utility is operating under a severe structural financial deficit caused by deferred maintenance, underfunded infrastructure and insufficient rate adjustments. The study reported existing annual revenues of approximately $1.2 million while projected annual operating costs begin at roughly $2.18 million in 2026 and rise to about $2.7 million by 2031; it identified approximately $16.2 million in capital infrastructure needs through 2031.

To address the shortfall, the report recommends adopting a break-even financial model anchored by an 84% volumetric water rate increase (from $0.0563 to $0.1039 per cubic foot), implementing monthly residential billing, instituting a Capital Improvement/Debt Service Fee, approving a Senior Citizen credit program for qualifying low-income seniors, revising reconnect fees and pursuing Illinois EPA low-interest financing with potential partial loan forgiveness. The study advised adopting the full proposed rate immediately rather than phasing increases, arguing that phasing would prolong deficits and increase long-term instability.