La Grange Water Rate Hike Questioned

LA GRANGE, IL – La Grange trustees voted Monday to raise water rates nearly 7 percent, a decision that a local watchdog questioned.

Four years ago, a village consultant recommended four years of 5 percent hikes.

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Monday's vote included the last 5 percent increase. That's in addition to a nearly 2 percent increase from neighboring McCook, which supplies La Grange's water.

During public comments, resident Al Foreman, who watches La Grange's finances, urged trustees to vote against the proposed increase.

He said the balances in the water and sewer accounts are considerably higher than when the consultant, Baxter & Woodman, recommended the increases.

A big reason, he said, was that the pass-through charges from McCook have been significantly overstated. He presented calculations that he said made his point.

"Erroneous charges in the past have inflated rates over time. That has contributed significantly to the higher reserves," Foreman said. "Accordingly, I think you can't tell 5,000 users you need to increase the rates by 6.85 percent. I think they are unnecessary."

Later in the meeting, Trustee Beth Augustine noted Foreman's argument and suggested the village consider holding off on the increase.

"We have very decent reserves," she said. "It does appear we're far ahead of our projections."

The village, she said, has many decisions ahead, such as how to pay for the required replacement of lead pipes. It may make sense to delay a water rate hike to figure out what the village needs, she said.

Village Manager Jack Knight said the money was needed.

"The fund balance in the water fund is only a fraction of what is identified in the infrastructure capital plan," he said. "We have about $25 million worth of projects intended to maintain the system. We need to have a healthy fund balance to support those needs."

The board voted unanimously for the rate increase.