Disputed Skokie Water Price Hiked Over 15 Percent In 2 Years

SKOKIE, IL — Water bills by Halloween in Skokie will be more than 15 percent higher than where they were last summer. The Skokie Village Board of Trustees Monday approved an ordinance to hike the water rate by nearly 7.5 percent on residents, nearly a year to the day after another increase of nearly 8.4 percent. But while the village raises rates on its consumers, citing infrastructure improvement, the village has also reduced the amount it has been paying for wholesale water from Evanston.

The two towns are now locked in state and federal court cases stemming from the water price. Despite the legal fees, Skokie water remains a bargain, according to village staff.

"A 7.48 percent water rate increase is recommended to fund all water-related activities for the coming year. Water infrastructure operations of approximately $5.9 million are planned for the coming fiscal year." said Skokie Village Manager John Lockerby, who recommended it to the board at the July 2 meeting. "Even with the rate increase, Skokie's water remains the second lowest of area communities."

It was given unanimous final approval on July 17 without further public discussion from trustees, the mayor or the village attorney. The increases will be phased in gradually over the coming months before reaching a rate of $45.92 per 1,000 cubic feet for all customers billed after Oct. 31, according to ordinance.

Skokie has not suggested the increase in rates is related to its ongoing legal battle with Evanston over wholesale water prices.

Evanston raised the water rate last year and, when Skokie refused to pay it, sued in Cook County court to enforce it. Skokie fought the claim and began paying a lower wholesale rate of 78 cents per 1000 gallons starting in October 2017 – about 10.4 cents per 1000 cubic feet.

That happens to be the same rate negotiated by the recently established Morton Grove Niles Water Commission and a lower one than ever agreed between the two municipalities. However, the commission is currently building about $90 million worth of infrastructure through both towns to connect new customers to Evanston's water.

A deal agreed 20 years ago between Skokie and Evanston pegged the price at $1.08 per 1,000 gallons, while Evanston was seeking to hike it to $2.06 for the same amount.

Skokie, after requesting a different judge in Cook County and trying to get parts of the Evanston's complaint thrown out for being a "quasi-brief", moved to filed the case in federal court, which has delayed proceedings in Chicago.

Skokie then filed what its village attorney called a "unique" federal civil rights lawsuit asking a judge to claim that the new rate was "arbitrary, criminal, capricious and contrary to Illinois law," among other things.

Pioneer Press reported the village board had been approving water rate increases of up to 5 percent a year in previous years. Since 2016, village officials estimated the average monthly bill has increased by $6.70 a month. Lockerby told the Skokie Review about 30 percent of water fund goes to pay for water from Evanston and the rest goes to operation and capital improvement.

The water rate remains in the bottom third of residential water rates in the Chicago area, although Skokie water prices have risen by more than 25 percent in the past five years, according to a Chicago Tribune investigation into area water rates. That investigation showed Skokie paid a lower wholesale price than any other North Shore community, even before the legal dispute began and it decided to start paying more than a third less for wholesale water.

Evanston last month released a video of a prepared statement of Mayor Steve Hagerty answering questions, including "Does Skokie have other options?" (Answer: "Skokie does have other options, including the city of Chicago," he said. "One option they don't have, is more water subsidized by Evanston taxpayers.")

Skokie's attorneys argued in the federal suit that the rate hike was punitive, claimed Evanston tried to keep the rate it was charging Niles and Morton Grove a secret and that an Evanston alderman threatened to impose higher rates through oppression.

Representatives from the two towns are due back in Cook County court Sept. 13, as Circuit Judge Celia Gamgrath will decide whether to wait for the other case to work its way through the court of U.S. District Judge Charles Kocora, where Evanston is expected to file an answer to the federal complaint before the end of the month.

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