cover
TO: Mayor John Laesch
FROM: Chris Minick, Chief Financial Officer
Jason Bauer, Interim Director of Public Works
Bob Leible, Superintendent of Water Production
DATE: June 12, 2025
SUBJECT:
An Ordinance Amending Article II of Chapter 48 of the City of Aurora Code of Ordinances Entitled “Municipal Utility Service” (Water and Sewer Rates) and establishing rates for said services.
PURPOSE:
To obtain the City Council’s approval of a proposed ordinance that would adjust the city’s rates for water and sewer service on July 1, 2025 and 2026.
BACKGROUND:
Historically, the city has adhered to the practice of adjusting its rates for water and sewer service moderately each year rather than imposing larger increases at irregular intervals. The rates are adjusted in order to keep pace with the cost increases associated with the operation and maintenance of the water and sewer systems within the city.
Staff proposes a modest rate adjustment in both 2025 and 2026 to address operational needs of the system and the implementation of the Capital Improvement Plan. This rate structure allows for a prudent level of funding for system operations and maintenance while simultaneously respecting and acknowledging inflationary trends.
A history of the city’s Class 1 water and sewer service rates per 100 cubic feet of water consumed (i.e., the consumption charge rate) since 2014 is shown below.
Amount of Percentage
Effective Date Rate* Increase Increase
July 1, 2014 $4.65 $0.25 5.68%
July 1, 2015 $4.80 $0.15 3.23%
July 1, 2016 $4.95 $0.15 3.13%
July 1, 2017 $5.05 $0.10 2.02%
July 1, 2018 $5.15 $0.10 1.98%
July 1, 2019 $5.35 $0.20 3.88%
July 1, 2020* $5.35 $0.00 0.0%
July 1, 2021* $5.50 $0.15 2.80%
July 1, 2022 $5.80 $0.30 5.45%
July 1, 2023 $6.20 $0.40 6.90%
July 1, 2024 $6.60 $0.40 6.45%
*Rates deferred or reduced due to COVID 19 pandemic.
DISCUSSION:
In order to address the anticipated operating and capital needs of the water and sewer system, the Water & Sewer Fund requires an aggregate revenue increase of 6% for 2025-26 and 6% for 2026-27. The current water rate structure includes a basic fixed fee (availability charge) and a water use/consumption rate (volume rate). The current rates and proposed rates are as follows:
|
|
|
|
|
Current |
|
Proposed |
|
Proposed |
|
|
|
Rate Type |
|
7/1/24 |
|
7/1/25 |
|
7/1/26 |
|
|
|
|
|
|
|
|
|
|
|
Availability Charge |
|
|
|
$21.05 |
|
$21.05 |
|
$21.05 |
|
|
|
|
|
|
|
|
|
|
|
Class 1 Volume Charge |
|
|
|
|
|
|
|
|
|
|
Water Service |
|
|
|
|
|
|
|
|
|
|
Residential |
|
$4.90 |
|
$5.25 |
|
$5.60 |
|
|
|
Non-Residential |
|
$5.00 |
|
$5.15 |
|
$5.30 |
|
|
Sewer Service |
|
|
$1.70 |
|
$1.90 |
|
$2.10 |
|
|
Total |
|
|
|
|
|
|
|
|
|
|
Residential |
|
$6.60 |
|
$7.15 |
|
$7.70 |
|
|
|
Non-Residential |
|
$6.70 |
|
$7.05 |
|
$7.40 |
A typical household water customer consumes approximately 1200 CF per bi-monthly billing period. Currently, this equates to a bill, on average, of about $100.25. With the proposed rates, this will increase by $6.60 per bi-monthly bill effective July 1, 2025 and July 1, 2026, resulting in bills of 106.85 and 113.45 respectively under the proposed rate structure.
Seniors qualifying for the Senior Exemption would see an even smaller increase in their bills of $1.64 per bill, resulting in a bit-monthly bill effective July 1, 2025 and July 1, 2026 of $42.50 and $44.15 respectively assuming 600 CF of water usage.
The proposed rates will result in the additional revenue required to pay for the cost-of-service to provide water.
Consistent with the City Council's efforts to remove "temporary" information such as water and sewer rates from the City Code, this ordinance will continue the practice of adopting the water and sewer rates by exhibit (which will not be codified) and remove all previously established water and sewer rates from the Code altogether. The attached Exhibit A sets forth the rates referenced herein for July 1, 2025 and July 1, 2026.
As discussed at the recent Committee of the Whole meeting, the biggest variable in the required funding for the water utility will be the proportion of lead service lines that will need to be replaced annually beginning in 2027. As the situation stands today, the City will need to significantly increase the number of lead service lines that are replaced each year. It is anticipated that this may have a substantial impact on future water rates. Staff will continue to monitor the requirements and keep the Council informed as necessary.
IMPACT STATEMENT:
Approval of this ordinance will provide for equitable increases in water and sewer rates to properly fund water and sewer operations and prudently fund capital projects consisting of ongoing maintenance and infrastructure replacement.
RECOMMENDATIONS:
I request the proposed ordinance be enacted.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance amending Article II of Chapter 48 of the City of Aurora Code of Ordinances Entitled “Municipal Utility Service” (Water and Sewer Rates) and establishing rates for said services for the annual periods beginning July 1, 2025 and July 1, 2026.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, in furtherance of its home rule powers, the City Council finds that it is necessary and desirable for the City to from time-to-time amend its ordinances regulating water and sewer rates and usage
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows: that the rates for water and sewer services set forth in Exhibit A shall be and hereby are established and shall take effect as described therein; and further
BE IT ORDAINED, that this ordinance shall be in full force and effect, and shall be controlling, upon its passage and approval; and further
BE IT ORDAINED, that all ordinances or parts of ordinances thereof in conflict herewith are hereby repealed to the extent of any such conflict; and further
BE IT ORDAINED, that any Section or provision of this ordinance that is construed to be invalid or void shall not affect the remaining Sections or provisions which shall remain in full force and effect thereafter