Notice to raise water rates, effective 5/1/25
March 10, 2025
Water rate increases are often necessary to cover the costs of maintaining and upgrading aging infrastructure, complying with new regulations, and ensuring long-term sustainability of water systems.
The Lilly Grove Special Utility District board of directors has determined that the base water rate at this time is inadequate to cover all operation and maintenance costs for water production and distribution. A base rate increase from $23.00 to $35.00 was adopted on 3/4/25 and will become effective 5/1/25. There will be no change to the tier water rate pricing that was adopted in 2023. Postcards will be going out in the next week to notify each customer of the upcoming change to the base water rate by mail. Please contact the office if you have any questions.
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Monthly Minimum(effective 5/1/25): $35.00 |
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Tier (gal.): |
$/1,000 gal.: |
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0-6,000 |
$5.15 |
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6,001-10,000 |
$6.00 |
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10,001-20,000 |
$7.00 |
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20,001-40,000 |
$8.00 |
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40,001-50,000+ |
$9.00 |
New bill Example- customer used 5,000 gallons of water- the bill will be $35.00 base rate + $25.75 for water used = $60.75 total plus tax
Old bill Example- customer used 5,000 gallons of water- the bill will be $23.00 base rate + $25.75 water used = $48.75 total plus tax
Here is a more detailed breakdown of why water rates need to increase:
Infrastructure Costs: Water and wastewater systems, including pipes, treatment facilities, and storage tanks, are expensive to maintain and often require upgrades or replacements as they age.
Inflation: Rising costs of materials, labor, and energy also contribute to higher operating costs for water utilities.
Funding Infrastructure Improvements: Rate increases can help fund projects like upgrading aging water mains, installing new meters, and building new treatment plants.
Ensuring Financial Sustainability: Water utilities need to generate enough revenue to cover all their costs, including debt repayment, and ensure their long-term financial stability.
