Analysis Approved to Determine Water Rates Increase

Water bills may be going up for village residents. 

On Tuesday night the Village Board voted to apply for a water rate increase that will be determined by a consultant’s analysis.

Before the village can issue a rate increase higher than the simplified rate increase of 3%  it needs to be approved by the state's Public Service Commission (PSC).

Part of the application to the PSC is a public hearing and testimony before the commission. An application to the PSC must be submitted 90 to 120 days prior to the increase.

If approved the rate increase will go into effect no later than Sept. 1.

In a report Clerk-Treasurer Kathryn Kasza said, “The village water continues to need a rate increase due to the cost to operate the utility and the reduction in water usage due to conversation.”

Last September the village issued a simplified rate increase of 3%.

In December Milwaukee wholesale rate for purchased water decreased for the village. However, the decrease did not offset the cost of operations.

"The amount paid to Milwaukee for water is only a part of the cost of operations of the Water Utility, years of not increasing the Village’s rate for previous Milwaukee wholesale rate increases have contributed to the utility’s need to increase its rate," Kasza said in the report. "It is estimated that the Water Utility will again report a loss for 2010."

Right now the minimum bill in Greendale it $16.69, according to a chart Kasza provided. Highest rate is with Oak Creeks' a minimum bill of $21. The lowest is West Allis with $9.73.

It's still not known what the rate increase will look like until the analysis is done.

"We don’t know what the rate increase request is at this time because the Finance Committee only approved the analysis of a rate increase," Kasza said.  "In April or May staff will return to the committee with the requested rate increase."

The approved analysis for the full rate case will be done by Schenck Government & Not-for-Profit for no more than $7,000.

The board wanted to make it clear that they have tried to avoid increasing rates for years.

"For many years and the past few years we as a village have sheltered the residents and rate payers from further water increases while Milwaukee water continued to rise , unfortunately we are now paying the price for that and having to consider rate increases," said Village President John Hermes.

The report to the board also said that "it may be necessary to have an annual increase of 9% or more over several years to bring the utility back to a positive rate of return."

If approved the rate increase would be provided to the public in the prior quarterly billing using the