2019/10/01 - Mayor's Column: Water and Sewer Rates
“An Open Door to O’Fallon”
A Weekly Note from Mayor Herb Roach
Yes, that dreaded water and sewer bill went up. The goal of the City of O’Fallon’s water and sewer system is to provide reliable, clean and safe service while charging just enough to maintain the integrity of the system and financially break even.
On October 1, 2019, the water and sewer bills experienced the annual rate increase of 3.2%. You probably wonder why we must increase these bills and you probably ask are we the only one with these increased costs.
First: Why must rates be increased? Our rate adjustment is due to three things:
1. We purchase water, wholesale from Illinois American Water Company. As they increase rates, we must also increase rates.
2. It costs money to keep the system in good shape. We are trying to be proactive with our old water and sewer lines and replacing them before there are major breaks which negatively impact your service. Some of our lines are more than 60 years old and are handling much higher volumes than when they are installed.
The water transmission main that runs along Union Hill Road, Longacre Road, and Ashland Avenue is in need of replacement due to age and capacity. This is currently programed as a 3-phase project with a total cost of $3.5 Million.
The two sewer trunk mains that transport sewage to the wastewater treatment plant also need replacement due to age and capacity. A recent contract to replace 5% of these trunk mains was approved at a cost of $2 Million.
3. The mandates and regulations are continually becoming more difficult. Making sure that we stay in compliance with IEPA regulations is more rigorous and more expensive.
The IEPA recently implemented new requirements regarding the chlorine residual in drinking water. This requirement is projected to require a $500,000 capital project along with increase operational costs, long term.
We were also recently informed by the IEPA that our wastewater treatment plant will be required to maintain a phosphorus limit that will be accomplished by completing a projected $9 Million plant upgrade next year.
Second: How do we compare to other communities?
When you look at the seven St. Clair County communities near us (Belleville, Fairview Heights, Freeburg, Lebanon, Mascoutah, Shiloh and Swansea) O’Fallon’s rates are middle of the pack, even after the new increase. O’Fallon’s rates are about 15% below the highest and about 20% above the lowest. But some of these communities have additional costs coming down the line that are not yet in their costs. One of them will be seeing 8% increases for each of the next twelve years.
Two years ago, the City Council voted to freeze our water and sewer rates for one year. We studied our rates and system needs and determined that we were able to freeze the rates and still properly maintain the system. This produced an annual savings of over $500,000 for our customers. Every year, we will review our rates and systems needs to see if an increase is warranted or if we can forgo an annual increase.
I wanted to share this with you, so that you know why this increase was made and because sometimes people feel that we are the only city that has water or sewer cost increases.
As residents of O’Fallon, you should always be able to reach out to your elected officials and ask questions about what is happening in O’Fallon. Having open communications is important to me and something I care very deeply about. Thank you for reading, and please remember, my door is always open!