Buffalo Grove plans to raise utility fees to fund water system upgrades

Chris Black, Buffalo Grove CFO
Courtesy of Buffalo Grove

Buffalo Grove could increase the fees it uses to help fund water and sewer system improvements.

The possible 10 percent increase was part of a discussion on water and sewer issues led by the village board last week. No decision has been made.

The fixed installation fee was instituted in 2020, as part of a strategy to fund $150 million for needed water and sewer infrastructure improvements. The strategy also included an increase in water rates and a new local fuel tax.

“When the financing strategy was developed, we didn’t want to impact the tax levy,” said village finance director Chris Black.

The fixed installation fee is a flat rate assigned to each meter account for access to the water and sewer system. The current rate is $17.39 per month for single-family properties. For multi-family commercial properties, depending on the size of the meter, the amount can be as high as $199.20.

Black said the fees generate about $2.5 million a year and should be reassessed every five years.

Last week’s discussion also focused on plans to issue debt for water and sewer improvements. Black said bond issues are planned in 2030 and 2033.

He said the village has about $80 million in improvements planned between 2030 and 2036.

An additional source of revenue comes from selling water to the Pekara and Horatio Gardens neighborhoods, through an agreement with the Lake County Department of Public Works, Black said.