Proposed rate structure would increase water, sewer bills in Park Ridge

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Updated: February 20, 2012 8:19AM

Park Ridge aldermen are looking for a second opinion after water-rate increases and a new way of structuring how much Park Ridge residents, businesses and schools pay for water were presented to the Park Ridge City Council.

Finance Director Allison Stutts conducted a water-rate study and formulated the new rate structure after the previous City Council cut $30,000 in funding from the city budget last year to pay for an outside, professional firm to perform the study.

But aldermen attending the first in a series of budget meetings Jan. 11 asked that the city do what the last council rejected — seek out a consultant to prepare a water- and sewer-rate study, and present recommendations.

“If nothing else, (it is a) validation of what she’s come up with,” 4th Ward Alderman Sal Raspanti said, referring to Stutts.

Under Stutts’ proposal water users would pay different base rates depending on the size of their water meters. The larger the meter the higher the base rate.

Most single-family homes would pay a bimonthly base rate of $32.97. Residences with 1-inch meters would pay a bimonthly base rate of $54.94, while other residences, larger multi-family units and commercial businesses would pay a base rate of between $109.89 and $2,197.71.

The proposed base rate does not cover actual water usage. All water users would be billed $3.54 for every 1,000 gallons of water consumed.

The existing water-rate structure is a base rate of $30.20 for the first 5,000 gallons of water used and $4.67 per 1,000 gallons when usage is between 6,000 and 30,000 gallons. Anything greater than 30,000 is $5.21 per 1,000 gallons.

Stutts provided several examples of how the rate structure will impact water bills. Households with average-size meters that use 16,000 gallons of water every two months would see their water bills increase from $85 to $94. Commercial buildings with 2-inch water meters that use 16,000 gallons of water every two months would see their bills jump from $85 to $244, while 70 Park Ridge buildings with 4-inch meters that use 90,000 gallons of water would pay a whopping $1,100 more than they currently pay bimonthly.

Two larger multi-family buildings in the city would actually see their water rates decrease under the new structure.

Stutts said her proposed rate structure will address a 25-percent water-rate increase passed by the city of Chicago and will also treat all users equally based on the size of their meter and the amount of water they actually use, which is not the case now. The structure will also make it easier to forecast the city’s revenues, she said.

Stutts also proposed an increase in the city’s sewer fee, to $1.42 per 1,000 gallons from $1.22 per 1,000 gallons of water used. She asked that if the city hires a consultant to perform a water-rate study, the consultant examine the sewer rate, as well.

Sewer revenues will be used to pay off bonds issued for several sewer-improvement projects.

City Manager Jim Hock said if the City Council ultimately supports the water-rate structure Stutts proposed, the city will need to explain why some users will see much higher bills, such as the 1,078 households and businesses with 1 1/2-inch meters that will incur a two-month base cost of $109.

“I am a consumer. I am one of the 1,078 residents who will say, ‘Chicago increased our rates 25 percent. You increased my rates 300 percent. Why are you doing that? What is your logical reason?’ ” Hock said.

Stutts acknowledged that she does not have an extensive background in conducting rate studies, but she believes a hired consultant will likely present a similar fee structure to the City Council.