As Shorewood Digs, Your Water Rates Could Rise

SHOREWOOD -- As the Village of Shorewood invests in water utility projects, residents could see water rates increase in order to help pay for rising debt costs associated with those projects.

According to documentation delivered to trustees at the July 11 village board meeting, Shorewood residents could see their water rates climb by 15 percent as early as 2017 - and then by 10-15 percent every two years for the next decade under a proposal recommended by utility officials.

According to the Shorewood Water Utility, debt service costs associated with a raft of current water utility projects amounted to approximately $400,000 in 2016, but are expected to rise by $50,000 per year until they reach $750,000 per year by the year 2023, unless something is done to counteract the rising debt.

The water utility is asking the board to consider their plan to increase utility rates by 15 percent in 2017, then again in 2019, in addition to 10 percent increases every two years until 2027.

The goal, water utility officials report, is to reach a break-even point with utility funds in 2018, with the intent to become revenue-bond eligible as soon as possible in order to fund future utility projects.

The utility has proposed two alternate plans that ease rate increases for utility customers, but would push back the utility's break-even point and bond-issuing capability.