By Howard Packowitz
NORMAL – Water and sewer rates will rise in Normal, if town council members endorse the idea Monday night. Staffers recommend the council approve an 82-cent per month increase in water rates and an extra 24-cent per month boost in sewer rates, effective May first. The average household will pay an extra $12.72 per year, according to town staff.
The rate hikes come amid heightened concern about the health of the town’s infrastructure. Last month, a huge water main break led to an unusual town-wide boil order, impacting hundreds of local businesses and forcing restaurants to close.
“It is critical that the water fund maintain a strong fiscal position to ensure financial resources are available to fund the current and long-term needs of the system’s operating and capital infrastructure,” staff members said in a report to the council.
The staff report indicated the council will consider a more formal multi-year rate structure the next few years as the town government seeks revenue to meet fiscal targets for the water fund.
The report stated the town needs extra cash to maintain a fund balance reserve equal to 20% of its operating expenses, approximately $3.5 million for system infrastructure, and $1 million-to-$1.5 million dollars on reserve in the capital fund.
If approved by the council, the water and sewer rate increases will generate about $207,000 in additional revenue.
Howard Packowitz can be reached at [email protected].
