Rate Changes

Water System Funding Structure

Winnetka’s water system is operated as an enterprise fund, meaning the costs to provide water, maintain the system, and replace aging infrastructure are entirely supported by customer charges, not taxes.

A 2017 study of the Village’s Water Fund concluded that the existing rates do not produce adequate revenue to address essential system infrastructure. Historically, the Village has billed customers for water based on usage only and at a lower unit cost than many area communities. This will not provide the long-term revenue stability necessary to support the required infrastructure improvements.

Approximately 58% of the Village’s water distribution system is over 100 years old. The system is experiencing failures at a rate (22.5 per 100 miles/year) of nearly twice the national rate (11 per 100 miles per year).

Customer Charge

Starting in 2018, the Village changed the way customers are charged for water service. Utility bills will include a customer charge, which is a flat monthly fee that is based on the size of each customer’s water meter. Approximately 86% of Winnetka customers will fall into the lowest category for 1-inch and smaller meters, which is a $11.88 per month charge. In addition, the Village is increasing the rate for water usage from $46.30 to $51.62 per 1,000 cubic feet of water used.

Water customers outside of Winnetka’s corporate limits will also incur the same monthly customer charge based on their meter size, along with the volumetric rate changing from $82.88 to $92.41 per 1,000 cubic feet of water used.

The following chart shows the effect the rate changes will have on the typical user, a customer with a 1-inch meter using 1,500 cubic feet of water in a month, compared to the rate for other communities. A typical Winnetka resident will pay an additional $106.40 per year.