Village poised to raise sewer rate 10%

Village of Grafton residents are expected to soon see a nearly 10% increase in their sewer bills.

The Board of Public Works on Monday recommended a 9.9% rate increase to the Village Board, which is scheduled to consider the proposal Monday, Sept. 21.

A study conducted by Trilogy Consulting of Oconomowoc in 2017 recommended that the village incrementally increase rates every year from 2017 to 2021, but the number of years has since been decreased to four. 

The rates have increased by 20% in 2017, 16.9% in 2018 and 11.4% in 2019. 

“Last year, the majority of the 11.4% increase was in flat charges, and the majority of the 9.9% increase this year is in usage charges,” Director of Public Works Amber Thomas said.

The proposed increase would raise the average overall sewer rate from $6.93 per 1,000 gallons to $8.17. If approved, the new rate would go into effect on bills sent to residents in  December.

Higher rate increases were recommended due to increased capital improvement costs and lower-than-expected water volume sales. The rate increases will help pay for a new headworks building for the water and wastewater utility that will cost $8.52 million, Thomas said.     

Thomas said the lower-than-expected rate is based on actual costs to date for the infrastructure improvements.

Thomas said the village has received complaints about the rate increase in previous years. However, the proposal to increase the rates was driven by a significant decrease in water and sewer use, she added.

Although declining utility use seems unlikely due to commercial and residential growth in the village, officials said, the amount of water sold by the utility decreased by 87.2 million gallons over 15 years, from 412.6 million in 2000 to 325.4 million in 2015, according to the study.

The decrease in water use and the related sewer use account for a $709,123 loss in revenue for the water and wastewater utility, the study stated.

Officials said that while the village has experienced significant growth since 2000, including the opening of Aurora Medical Center in 2010 and large retail stores in the eastside commercial district, those operations are relatively efficient water users. Several manufacturing companies, historically the largest water users, are no longer in operation. 

The headworks building is the first of three projects for the utility that will be supported by revenue from the rate increase. The other two projects will include buying new equipment for filtering biosolids planned for 2023 and an activated-sludge project scheduled for 2028. 

The current headworks facility is about 35 years old and is “no longer effective,” Community Development Director Jessica Wolff said at a Plan Commission meeting. Typically, water-treatment facilities have a 20-year lifespan.

Officials said the upgrades will increase the current capacity of the facility to accommodate growth in the village for the next 20 to 30 years.

The headworks building will also replace a screw-pump facility that will be demolished.