New Water Rate Structure
The Village of Lemont included information in our Summer-Fall 2023 and Winter 2024 newsletters regarding our local water and sewer system and structure and rate changes. The Village retained HR Green, a professional engineering firm, to assist us in conducting a water and sewer rate study to make sure that the water and sewer fund remains financially healthy and is sufficient through user fees (rates).

The rates are being restructured to meet the following objectives:

1. Promote water conservation to meet the permit conditions established by the Illinois Department of Natural Resources (IDNR) to maintain the Lake Michigan Water Allocation. 
2. Determine the revenue needed to cover the costs of operations, annual debt service, and capital improvements while meeting the following financial criteria: (a) Meet the debt covenant requirement; (b) Maintain a 3-month operating expenditure reserve; and (c) Maintain a positive cash balance.
3. Reduce the financial burden on senior citizens for essential water.

New Water Service Fees
The Village selected a residential tiered rate structure to promote water conservation, a bimonthly base fee, and a single water/sewer rate for commercial users. Additionally, senior citizens would have a 50% discount on the bimonthly water and sewer base fees as well as a 50% discount on the water and sewer rates for the first 18,000 gallons used bimonthly. Senior citizens would pay the regular rates for water use above 18,000 gallons bimonthly.

The new rate structure, shown below, goes into effect on February 1, 2024. 

Local Water & Sewer System – Structures & Rate Changes

The Village owned water system has been an asset to the community and residents for decades.  As communities in the region have joined Lake Michigan regional suppliers, the Village has been able to control its own supply and keep water and sewer rates low for its residents and businesses.  Water and sewer rates have been some of the lowest in the region with only inflationary increases over the years with the ability to grant seniors a discounted rate greater than any other municipality in the region.  

Over the last few years, we have increased our investment into our water and sewer infrastructure significantly including aggressive watermain replacement programs, new water storage facilities and other improvements. We have also experienced costly emergency well repairs and other unexpected large expenses.  We have paid for these expenditures utilizing cash reserves and debt issuances out of the water and sewer fund.  Looking ahead, we will also have to tackle the unfunded mandate of replacing lead service lines in the community, of which 100% of the costs must be covered locally. 

Steps have been taken to retain a professional engineering firm (HR Green, Inc.) to assist with conducting a water and sewer rate study to make sure that the water and sewer fund is financially healthy and is sufficient through user fees (rates).  Additionally, to make certain that the customers of the system are producing the revenues necessary to pay for the expenses of the fund, to cover the operational costs, capital costs and the debt of the fund.  

The intent of the study was to restructure the rates to meet the following objectives:  promote water conservation to meet the permit conditions established by the Illinois Department of Natural Resources (IDNR) to obtain a Lake Michigan Water Allocation; Determine the revenue needed to cover the costs of operations, annual debt service, and capital improvements while meeting various financial criteria; and reduce the financial burden on senior citizens for essential water.   As a recommendation of the study, the system’s rates will need to be increased and the rate structure revamped to meet the various objectives.  The new rates and structures, which promotes water conservation, will go into effect February 1, 2024.

View the Study and Exhibits

Along with many other towns in the area, the Village had previously completed an analysis and evaluation of long-term water supply options.  Studies show the Village’s water supply being healthy for several more decades, and the urgency to switch suppliers is not as high as other communities in the region.  As a result, the Village has not committed to alternative supply, but will continue to evaluate the situation and stay connected with regional suppliers in the region. As part of the comprehensive analysis, the Village retained a professional engineering firm to assist in the process to produce a full report and lead a discussion with the Village Board at series of public Committee of the Whole meetings in early 2022.  You can review the reports at :

• Final Report: Lemont Water Supply - February 2022
• HRG Presentation - February 2022
  

Lake Michigan Allocation – Illinois Department of Natural Resources (IDNR)

Along with the long-term water supply evaluation, the Village Board directed staff to continue down the path to secure an allocation of Lake Michigan water from the Illinois Department of Natural Resources (IDNR), should a decision be made one day to switch water sources, and/or a cross connect to Lake Michigan water be necessary.  Through a lengthy and comprehensive process, the Village has now secured that allocation.  The Village’s latest amended application can be viewed here:  

• Lemont IDNR Allocation - Amended Application 12-15-22
  
  
• Lemont Final Order