How are these projects funded?
The Illinois EPA manages federally-funded revolving loans to pay for major wastewater projects. The District will pay for many of these projects with loan program funds. The District will apply for up to 30% principal forgiveness, based on the demographics of the service area and the strength of the loan applications. Principal loan forgiveness is a competitive process with limited funds available each year. The remaining loan balances will be paid back over a 15 to 20 year period. The current loan program interest rate is 1.7%. The loan payments will be a combination of user fees and reserve funds. See the information below for necessary rate structure adjustments.
To minimize the financial impact on our customers, it is critical for the District to obtain these loans and principal forgiveness while the program exists. Recognizing the limited resources of our community, this is the most desirable and cost effective plan to fund the ongoing preservation of our environment and public health for future generations.
Proposed Rate Structure for the Period of 2021 to 2030
Effective May 1, 2021, residential unit charges will increase to $8.25 per month from the 2005 charge of $7.75 per month. The monthly residential unit charge will increase $0.50 ($6.00 annually) each January 1 thereafter.
Non-Residential (Business, Commercial, Industrial)
Effective May 1, 2021, the non-residential unit base charge will match the residential monthly unit charge of $8.25, and the base charge will match the residential charge established on each January 1 thereafter. For accounts with flow volumes in excess of 8 units, their flow rate charge will increase by 3% effective May 1, 2021, and the flow rate charge will increase 3% each January 1 thereafter. For accounts subjected to surcharges, surcharge rates will also increase 3% along with the flow rate increases.
For waste haulers depositing directly at the plant, the following fee schedule per 1,000 gallons will be in effect, unless operating under a separate agreement with the District.
May 1, 2021: $50 for septic, and $60 for grease
January 1, 2022: $75 for septic, and $90 for grease
January 1, 2023: $100 for septic, and $125 for grease
*2020 Capital Projects are urgent projects underway and will be paid for through a combination of procured grants and District reserve funds.
**Loan Program 3 & Future Rate Structure beyond 2030 will be determined in 2027-2028. Primary factors to consider will include grants received, balance of reserves available, and the project specifics of Program 3.