Latest / Kendall County News - Shaw Local / Yorkville delays next water rate increase again; federal $170 loan for Lake Michigan Project moving forward

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Yorkville delays next water rate increase again; federal $170 loan for Lake Michigan Project moving forward · Kendall County News - Shaw Local

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  Speaker 1: Yorkville delays next water rate increase again. Federal $ 170 loan
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  Speaker 1: for Lake Michigan project moving forward. Written by Joey Weslow.
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  Speaker 1: This article is being read by an automated voice brought
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  Speaker 1: to you by Everlit. With four more years left on
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  Speaker 1: the near 20% annual water rate increases, the city of
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  Speaker 1: Yorkville is again delaying the next hike until the total
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  Speaker 1: costs of the Lake Michigan water project become a little
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  Speaker 1: less murky. City Administrator Bart Olson previously said steeper rate
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  Speaker 1: increases could be necessary to offset costs associated with construction
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  Speaker 1: bids coming back higher than expected and the city's $ 170
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  Speaker 1: million federal loan for the overall $ 224. 4 million project being
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  Speaker 1: stuck in limbo. Since then, the city has received some
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  Speaker 1: good news. Mayor John Purcell previously said the second-to-last bid
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  Speaker 1: came in under the engineers' estimates. And during the August
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  Speaker 1: 25th City Council meeting, the city said its $ 170 million
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  Speaker 1: Water Infrastructure Finance and Innovation Act loan from the U.S.
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  Speaker 1: Environmental Protection Agency has been advanced. Finance Director Rob Fredrickson
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  Speaker 1: said the city anticipates closing on the loan within the
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  Speaker 1: next 30 days. The city has relied on a $ 35
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  Speaker 1: million and a $ 50 million bridge loan to cover bills
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  Speaker 1: in the face of uncertainty regarding the federal loan due
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  Speaker 1: to federal staffing shortages and slowdowns. Fredrickson said once the
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  Speaker 1: loan officially closes, it will provide the city additional flexibility
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  Speaker 1: in managing future rate adjustments and potentially creating opportunities for
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  Speaker 1: limited rate relief if project costs continue to trend favorably.
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  Speaker 1: While the uncertainty becomes a little clearer, the City Council
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  Speaker 1: approved postponing the fiscal year 2027 water rate increase from
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  Speaker 1: July 1st to September 1st. In June, the city council
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  Speaker 1: also delayed the rate hike. Residents will now see the
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  Speaker 1: rate increase on their October bills. This will just delay
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  Speaker 1: an increase and we'll analyze it, see if we can
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  Speaker 1: further push off the increases if it's possible again, which
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  Speaker 1: we don't know at this point, Purcell said. The city
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  Speaker 1: implemented the first round of rate hikes on July 1st, 2025.
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  Speaker 1: Yorkville residents received bimonthly billing fees. City councils initially approved
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  Speaker 1: the multi-year water rate increases in June 2025, with one
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  Speaker 1: alderman calling it a necessary evil. The increases are designed
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  Speaker 1: to help cover the expenses to connect to water pipes
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  Speaker 1: carrying Lake Michigan water in Naperville, run by the DuPage
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  Speaker 1: Water Commission. The joint project between Yorkville, Oswego, and Montgomery
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  Speaker 1: involves extending pipes out to the respective cities for a
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  Speaker 1: total shared cost around $ 400 million. Yorkville also had to
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  Speaker 1: construct water receiving stations and additional water towers as part
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  Speaker 1: of the project. The final construction bid for the project
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  Speaker 1: is expected this fall. Fredrickson said the four-month water rate
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  Speaker 1: increase postponement will not affect the city's ability to meet
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  Speaker 1: its operating, debt service, or other financial obligations. State statute
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  Speaker 1: requires the city maintain water fund net revenues at least 1.25
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  Speaker 1: times the annual debt amounts, according to city records. After
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  Speaker 1: fiscal year 2030, the city has planned 3% annual increases
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  Speaker 1: for both the minimum fee and volumetric rate for water
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  Speaker 1: running from 2031 through 2065. Under the current approved water
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  Speaker 1: rate plan, the average Yorkville home experienced a 21% increase
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  Speaker 1: from a $ 106 bimonthly rate to $ 128. Over a five-year period,
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  Speaker 1: they will pay a $ 210 bimonthly rate. Over a five-year period,
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  Speaker 1: the average home will pay an average annual bill of
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  Speaker 1: $ 926 for a total of $ 4, 630 over those five years.
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  Speaker 1: Over the five-year hike period, restaurants will have an average
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  Speaker 1: annual bill of $ 6, 987 for a total of $ 34, 936. Large
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  Speaker 1: commercial users will have an average annual bill of $ 47, 394.
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  Speaker 1: with a total of $ 236, 968. The first Lake Michigan water
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  Speaker 1: should reach the city's residents by the summer of 2028.
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  Speaker 1: The city needs to complete all construction by 2027 for
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  Speaker 1: the project, including on water mains and new water receiving stations.
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  Speaker 1: The project was deemed necessary because of current unsustainable usage
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  Speaker 1: of the region's underground aquifer, primarily driven by a population increase.