After seeing their water rates increased by 24 percent in December, Riverside residents are about to get tagged with another 7.3 percent hike this summer.
On April 5, Riverside trustees heard the first reading of a new ordinance to increase water charges beginning in July. The rate will mean an additional $12.92 per bill for Riverside customers, who have seen their water rates jump more than 50 percent since 2008.
Beginning in July, Riverside will charge customers $7.84 per 100 cubic feet of water versus the $7.30 they pay now. The rate increase is needed in order for the village to fund $2 million in debt incurred late last year when the village received word that it qualified for federal loans to complete shovel-ready water infrastructure projects.
The loans, which are coming from the Illinois Environmental Protection Agency and the American Recovery and Reinvestment Act, allow the village to complete the projects sooner and cheaper than if they issued traditional bonds.
In all, the village is borrowing $2.76 million to complete eight water main projects this year. But the program will forgive $700,000, or 25 percent, of that amount. The balance can be paid off at zero-percent
interest.
Had the village sought traditional sources of financing for the projects, it would have paid about 4 percent in interest and almost doubled the annual debt payment. Such financing would have also doubled the impact to local water bills, according to a memo given to village trustees at the April 5 meeting.
While the loans have a 20-year maturity date, Village Manager Peter Scalera said last week that the rate increases are being considered as permanent. The village board is expected to approve the ordinance reflecting the new water rates at its regular meeting scheduled for April 19 at 7:30 p.m. at the Riverside Township Hall, 27 Riverside Road.
In January, the village embarked on the replacement of the Northgate Road water main and last week started its replacement of the water main on East Burlington Street between Longcommon and Cowley roads.
Public Works Director Greg Koch said last week that the six other projects have not yet been scheduled.