Water Security Through New Water Rates

As the infrastructure continues to age and require replacement or upgrades, the Village of Orland Park’s utilities of water, sewer, and storm water must strike a balance between capital improvement expenditures and financially sustainable water rates.

In 2022, the Village of Orland Park completed a rate study to determine Water and Sewer Rates from 2023 through 2027.  The criteria for the rates was that water, sewer, and storm water system must be financially self-sufficient with no subsidies from the General Fund and those that cause the expenses (ie. users, pay for the expense).

The objective of the rate study is to keep rates and fees low over time.  Rates should provide adequate funding to keep facilities in good condition to prolong useful life, should maintain reserves and debt coverage and increases should be regular, gradual and smooth.

Through a structured methodology, the resulting changes occurred as follows and are reflected in the new rate charts below:  

• Water: Increases on Regional Water Security costs, as well as increased capital investment in water assets.
• Sewer: Rates are sufficient to maintain sewer operation, maintenance and capital spending. No increase warranted.
• Storm water: One-time increase of $0.95 in FY 2022 to align storm water revenues with future costs of Operation and Maintenance and capital spending, 3.0% increases thereafter.

The Village of Orland Park also compared the new pricing with various neighboring villages as well as villages the same size as Orland Park.  As seen in chart below for average residential home, the cost for water and sewer water remains low.  This chart excludes villages that are supplied by Illinois American Water which are substantially more expensive than this chart.