North Chicago eyes another water rate hike

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Updated: January 14, 2011 11:29PM

A water rate increase of as much as 15 percent — while still in the talking stage — has put chills in residents who have yet to absorb a 3 percent increase in October, plus a 4.9 percent increase in property tax rates.

Mayor Leon Rockingham Jr. stressed the need to have another increase to maintain the water plant, as well as water and sewer lines, which would otherwise continue to deteriorate. North Chicago operates its own water pumping and filtration facilities.

“Last year, we had 70 water main breaks,” he said, pointing out that the city can’t make infrastructure improvements, particularly on the streets, unless water and sewer lines are repaired or rebuilt first. Otherwise, he said, “It would defeat the purpose.”

“It’s tough in this economy,” the mayor said. “I feel for our citizens. It affects them and also my family.”

Third Ward Ald. Valerie DeVost, who heads the City Council’s Water Committee, said residents can ill-afford the hefty increases during these hard times when many people are out of work and losing their homes to foreclosure.

Foreclosed homes are one reason the city’s revenue from its water operations has suffered. Water has been shut off at the unoccupied dwellings.

Abbott Laboratories, the city’s biggest water customer, has also cut back on its water usage by as much as 20 percent because of manufacturing consolidation and the spin-off of its hospital products division, now Hospira Corp., according to Rockingham. Abbott officials could not be reached for comment.

Last year, the city’s water operation posted $6 million in revenue, down by $1 million.

The 15 percent increase is one of the options recommended by Baxter Woodman, an engineering consulting firm hired by the city to study its water operations.

North Chicago is reputed to have one of the lowest water rates in Lake County. Its current rate is $3.33 per 1,000 gallons. The sewer-water rate is 93 cents per 1,000 gallons.

The other options are an 11 percent or 8 percent increase. All proposed increases are for the first year with gradual decreases over a five-year period.

Another option is to level an unprecedented $30 base fee or minimum charge every two months on residential customers even if the usage is below the amount that would cost $30.

No decision has been made on the recommended options. Additional hearings will be held, the mayor said.

Chandler Walker, a former alderman who headed the Water Committee while he was on the City Council, said while he believes a rate increase is needed. He questions the validity of a hefty 15 percent increase following a 4.9 percent increase in the city’s portion of the property tax.

“It’s either one or the other. You can’t raise the water rate and then turn around to ask for an increase in the property tax. You can’t keep raising taxes every year,” said Walker. “It’s easy for the city to seek a water rate increase because everyone uses water.”

Walker pointed out that North Chicago kept the property tax increase at 4.9 percent because to go beyond that would require voter approval in a referendum.

Rockingham said the city is exploring the sale of water to other municipalities or entities so as to reduce the burden on city residents.

“We have the best water this side of Mississippi,” he said of the city’s lakewater.