Special Meeting about water mains

Unsigned posted notice of the meeting - no indication if it is "official" or not

Updated  August 31
There is a special meeting with the City of Wheaton about the water mains in our association. That meeting is scheduled for September 5 at 7:00 pm in the Rathje room of the Wheaton Park District.

More than a year ago, the City of Wheaton sent a communication to our HOA to discuss taking over the water mains.  This was a result of 5 years of effort by me. The current board has done nothing about this, to my knowledge.

A failure to act by the board will spend $millions of owners fees needlessly.

But the board seems oblivious. I sent and email to the management demanding that all current board members attend the meeting.

Added August 31, 2019:
There was no mention of this in the most recent newsletter (July) and the notice does not indicate if this is an official, sanctioned HOA event. This February HOA meeting notes mentions the water mains, but no mention of the formation of a special committee or who is on that committee. Note: the HOA never posted the January meeting notes, but it is mentioned in the February report.

This led me to contact Management and ask about the notice.

1. Did the Board ever send a letter to the City indicating it wanted to discuss the Water Mains, in response to the City Manager’s letter? Answer: Yes the Board asked members to form a committee and the committee reached out to the City discussing the water mains. This was the committee members idea to have an “informational meeting” concerning the water mains so owners can understand what this process will entail. 
2. The attached notice was posted at [my address] and I assume elsewhere. A meeting is to be held on September 5 regarding the Water Mains. According to the notice the Wheaton Water Superintendent will be there. I assume the HOA did not schedule this. Will the board be there? Who else for the HOA? Answer: The Committee did set up this meeting with the City and superintendent, again to inform owners of what this whole process is about. The Board will be in attendance, but this IS NOT A BOARD MEETING, no discussion with owners and the Board will take place, nor will the Board make any decisions at this meeting. This is informational only. I will also be attending, but I might be later I have a meeting before this meeting on the same evening.
3. In a later email Management stated this: The board does want owners to attend and they will have a drop box for owners questions for the supervisors at the meeting.

Water Metering Charges

You might not be aware of the current water metering charges. These have increased in recent years as the City of Wheaton moves water infrastructure costs as well as water costs onto the water bills. This is a good approach, similar to what our HOA does with its capital costs. However, this has caused significant water charge increases in the last 15 years.

To be fair, some of the cost increases are attributable to Chicago which provides the water. Other increases are attributable to decreased revenue sharing the by State of Illinois. Communities are being squeezed as the state borrows money and diverts tax income to the bond holders.

The following is the current minimum billing, even if there is zero water usage. I was told by the city that the "usage" is increased as necessary to assure a minimum $20.69 monthly bill.

Water Rate Increase January 1, 2015

From the City of Wheaton. The cost of water will increase on January 1, 2015. How much will this cost us in 2015?

Current water rates include a monthly service charge. To quote the City of Wheaton, "water customer bills now include a service fee, which is a flat monthly charge that is based on the size of each customer’s water meter." According to Wheaton's published information, the fee for customers with meters from 5/8" to 3/4" will increase from $9.38 per month to $13.59 per month, which is about 45% more. In addition, water rates per 100 cubic foot (100 c.f.) will increase from $4.49 to $5.05 or about 12.5%.

Using the new fee and the new water rates, the bill for a customer who uses 500 c.f. per month will increase from $31.83 per month in 2014 to $38.84 per month in 2015. That's an actual increase of about 22% in 2015.

Your actual bill will be calculated by adding the usage plus the monthly service fee. Here is the published rate chart:

2015 Water rates and fees

Rate per 100 c.f. - $5.05

Meter Size

Monthly Service Fee

5/8”

$13.59

5/8” x 3/4”

$13.59

3/4”

$13.59

1”

$27.18

1 ½”

$54.35

2”

$86.96

3”

$163.06

4”

$271.76

6”

$543.53

Here is Wheaton's bulletin on the rate increase:

Water Bill Increase Begins in January

To support infrastructure improvements and to offset the increase in the amount the City of Chicago and the DuPage Water Commission will charge Wheaton for water, Wheaton’s water rate increases on Jan. 1, 2015. The rate the DuPage Water Commission charges Wheaton for water increases 17% on Jan. 1, 2015.

The water use rate will increase from $4.49 per 100 cubic feet to $5.05 per 100 cubic feet on Jan. 1. While the service fee differs based on meter size, the fee for most Wheaton customers will increase from $9.38 per month to $13.59 per month. The specific increases for each water meter size are reflected in the tables in this section of the City's website. Nearly 90% of Wheaton customers fall into the first three meter sizes (5/8-inch, 5/8-inch by ¾-inch, and 3/4-inch). The typical user’s bill, with a ¾” meter and 600 cubic feet of usage, would increase from $36.32 per month to $43.89.

For more information about water billing changes, see the City’s website atwww.wheaton.il.us/waterbill.

City of Wheaton Posted Date: 12/19/2014 2:27:09 PM

Possible Water Rates by 2015

I was asked about the significance of the water rate increases contemplated by the City of Wheaton and the DuPage Water Commission.

If they do occur, expect three years of increases, just about doubling the cost of water for residents by 2015. In other words, I should probably begin planning a personal budget to deal with such an increase. If the city and county proceed, it will require I budget an additional $428.90 a year for water by 2015. Please note that most of the increase is by the DuPage Water Commission. This was detailed in the City of Wheaton press release, which is the previous post.

Here's a real world example, based on a recent water bill, and with the percentage increases from the Press Release, which is contained in the previous post:

• Monthly water bill in 2012 = $38.50
• Monthly water bill in 2013 after 30% increase =  $50.05
• Monthly water bill in 2014 after 25% increase = $62.56
• Monthly water bill in 2015 after 20% increase = $75.08.

So there you have it. Within three years, my water bill will possibly be about $37 each month higher than it is today. 

Is there anything we can do about this? Use less water is one thing to think about. Of course, we can petition the City Council and our local politicians, but that raises the question "where is this money to come from?" After all, a significant part of our water bill goes to the City of Chicago, and that fiscally teetering drunk to our east is in about as bad a financial shape as the State of Illinois is, overall. So we can expect to pay higher water rates as the City of Chicago increases the fees collected per gallon. However, these water rate increases are "to allow revenues to catch up with water system operating and maintenance expenses and to fund the full cost of operating and maintaining the water system."

Sorry to be the bearer of bad news. And yes, this will raise the cost of water for our association. So watering shrubs, trees and keeping our streams running will cost about twice as much in 2015 as it did in 2012, unless some "miracle" occurs. 

I'm sure we'll have owners coming to association meetings or sending emails to the board and complaining "You should do something about this!"

Yes, as an owner in your association, if there is something to be done about this, I suggest YOU should be the one to do it! Oh, and by the way dear reader, this applies to any and all residents; who also use water. So, if this is a possible issue for the reader, I'd suggest meeting with the City Council. The City Council will continue discussing this, and attending these meetings as well as "Coffee with Council" is a wonderful way for owners to participate. The next "Coffee with Council" will be on Saturday, September 8 at 10:00am in the Gamon Room at Wheaton City Hall, 303 W. Wesley. According to the city "City Council members conduct Coffee with Council sessions at 10 a.m. Residents are invited to attend these informal sessions to discuss any item of interest with the Council."

Notes:

1. I'd suggest that owners be thankful that they aren't paying Chicago for water and sewer. 
2. Chicago Mayor Rahm Emanuel, sometimes called the "Rahmfather" was quoted in the Chicago Tribune as saying "Nearly half the cost of the water and the street repair will be (borne) by the suburban people who rely on the system....Chicago residents themselves won't be bearing that cost." In other words, you, dear reader, as a suburban uses of Chicago water, will be paying an unfair share and that will include Chicago street repairs. If you don't like it, contact the Mayor's Office in Chicago. I'm sure they'll tell you where to go. 
3. Here's a link to the original Chicago Tribune article: 

Chicago Tribune October 15, 2011

Chicago also gouges its citizens for water. How would you like to live in Chicago in a small bungalow and pay $339.43 for one month's water and sewer? That bungalow is about the size of one of our units. Compare that bill to your combined water and sewer bill. Here's a link to an older article in the Chicago Sun Times about how Chicago, by avoiding the use of water meters, has skewered many of its residents with unusually high water and sewer bills. There is no date on the article, but as it refers to Mayor Daley, it's obviously old.

Sun Times Chicago Water Rates

Water Rates to Increase

The City of Wheaton has completed a study to analyze the water rates. Our association uses water in several ways. Each entrance has 5 water meters. One each for metering the use of each resident. Those meters are billed to the owner of the unit. The fifth meter is for water to the outside spigots. These are used for maintenance purposes, as well as by owners who assist the association by watering our shrubs and trees under drought conditions. A few owners use the water that is billed to the association, and their neighbors for personal purposes, usually cleaning their automobiles.

Here is a press release from the City of Wheaton pertaining to the problems faced by the City because of the shortfall from water meter fee collections and the actual cost of water.

The cost of water is one of the items that your association board takes into consideration during its annual budgeting session.

It is probable that water rates will increase. What remains to be determined is what specific rate the City Council, and the DuPage Water Commission, will ultimately adapt.

PRESS RELEASE

Tuesday, August 28, 2012

Watch Council Discussion of Proposed Change to Wheaton’s Water Rate

WHEATON, Ill. – Last night, Wheaton’s City Council listened to a presentation summarizing the results of a study analyzing the City’s current water rate structure and the costs associated with providing water service to Wheaton customers. According to the study, the City’s current water rates will not produce adequate revenues to cover the costs of operating and maintaining the water system starting in Fiscal Year 2013.

Municipal & Financial Services Group, the firm that performed the study, made the following recommendations based on their findings:

• The City should increase revenues from water rates over the next three years to allow revenues to catch up with water system operating and maintenance expenses and to fund the full cost of operating and maintaining the water system. These increases should be in conjunction with the DuPage Water Commission increases for a total revenue increase of:
  • 30% on Jan. 1, 2013 (20% DuPage Water Commission increase + 10% City increase)
  • 25% on Jan. 1, 2014, (18% DuPage Water Commission increase + 7% City increase) and
  • 20% on Jan. 1, 2015 (17% DuPage Water Commission increase + 3% City increase)
   
• The City should adopt an alternative water rate structure that will increase the revenue stability within the Water Fund by collecting more revenue from the fixed portion of the water bill, eventually collecting 25% of revenues through the fixed charge by Fiscal Year 2015. The fixed charge should be based on meter size.
• The City should strive to maintain a minimum unrestricted net asset balance within the Water Fund equal to 30% of the operating expenses.

A video of the presentation and Council discussion is available on the City’s website. The Water Rate Study Report document and the Water Rate Study City Council Briefing (which is the Powerpoint presentation displayed at the meeting) are also available on the City’s website. Look for more information in the future as the Council continues its discussion of Wheaton’s water rate. 

Announced City Water Rate Increase

Chicago announced a 25% water rate increase to take effect in 2012. This will be reflected in our monthly water bills, because Wheaton gets its water from Chicago. However, it was reported that both water and sewer rates will increase. 

On Monday, January 2 the Wheaton City Council passed this vote, as reported in a local news outlet:

“Wheaton residents will start the new year with a 30 percent increase to their water and sewer rates in their next bill.

In a 6-1 vote Monday night, the Wheaton City Council approved the hike from $2.65 to $3.45 per 100 cubic feet of water. The combined rate for water and sewer services will be $5.50 per 100 cubic feet of water used. According to city documents, the average Wheaton customer’s water rate will increase by $9.60 per month, based on an average use of 9,000 gallons per month.”

It was also reported that the commission is expected to increase its rates by 20 percent in 2013, 18 percent in 2014, and 17 percent in 2015. "These increases are purported to be necessary to pay off a $70 million debt."

Well, I got my personal water bill yesterday and the rate for water did increase by 30%. So my water bill for 600 cubic feet was about $10 more than the previous month.