By Howard Packowitz
NORMAL – Property owners in Normal would pay two percent more on their water bills starting April 1 if town council members back the idea Monday night, and government staffers suggested this would not be the last increase.
The staff’s report to the council said the average household consuming 5,000 gallons of water would see a 77 cent monthly increase or $9.24 more for the entire year.
The rate hike would generate an estimated $186,000 for the fund used to upgrade and make water system repairs.
Two percent rate increases have been factored into the out-years so staff can project the water fund’s five-year outlook, but the council will vote Monday on rates only for the coming fiscal year.
A “maintenance increase” will be considered each year until the completion of a comprehensive rate study, the staff’s report said.
The staff’s report said the fund’s five-year outlook reveals potential fiscal year challenges as the town allocates approximately $3.5 million annually for water system improvements.
Town staffers also want to maintain a fund reserve that’s equal to 20 percent of the system’s operating expenses in addition to a capital fund reserve of $1 million to $1.5 million.
The council will consider a “maintenance increase” each year until the completion of a comprehensive rate study, the staff’s report said.
Howard Packowitz can be reached at [email protected]
