2026 Water Rate and Billing Update

 The Village partnered with Burns & McDonnell of Chicago, IL to complete a comprehensive Water Rate Study Report. This report serves as a roadmap for managing the Village’s Water Fund over the next 10 years. The goal of the study was to develop a rate plan that ensures adequate funding for water operations, debt service, system improvements, and capital projects—while keeping rates fair and reasonable for our customers.

Why Are Rates Changing?

The recent study showed that the Village’s current water revenues will not be enough to keep up with the growing costs of operating and maintaining our water system. These rising expenses include the Village-wide, mandated replacement of lead service lines, upgrading aging water mains, and investing in long‑term improvements needed to keep the system dependable. By making these periodic adjustments, the Village can secure the funding needed to keep our water system safe, efficient, and aligned with modern standards.

What’s Changing

Based on the study’s findings, the Village Board approved a water rate increase and a new fixed monthly meter fee on September 30, 2025. These changes will take effect with January 1, 2026 utility bills.

Water Usage Rate

• The cost per 1,000 gallons will increase by 4%, from $11.29 to $11.74.
• No changes to sewer rates or Thorn Creek Basin Sanitary District (TCBSD) rates. (TCBSD provides wastewater treatment for Chicago’s south suburban communities.)

New Meter Fee

• A fixed monthly fee will be added to all water accounts, based on meter size.
• This fee helps recover costs from larger commercial and industrial meters that place greater demand on the system.
• For most customers, this will have minimal impact on the total bill since 86% of accounts have a 5/8” or 3/4” meter, which equals $3.94 per month (previously $3.77).

Administrative Fee Adjustment

• Previously, the administrative fee included water, sewer, and TCBSD charges.
• With the new meter fee, the water portion of the administrative fee will be removed.
• Going forward, the administrative fee will include only sewer and TCBSD, totaling $2.12 per month.

Sample Bill Comparison (Typical Residential Customer)

Assumes 5,000 gallons of water usage and a 5/8” meter)

Difference: Approximately $2.42 per month for a typical residential customer.

The Water Rate Study was accepted by the Board of Trustees on September 30, 2025. You can download and read it here: Homewood Final Water Rate Study Report - 9.22.25