Title
Report on Buffalo Grove sanitary sewer billing practices and request for adoption of interim measures.
Staff summary
· A preliminary report on the Village of Buffalo Grove sanitary sewer billing practices and changes for 2011 was reviewed with Committee at the October 5, 2011 meeting.
· Village representatives were in attendance and requested that they work jointly with the County to resolve the issue of application of a summer sewer credit limiting the sewer portion of residents' bills to 110 percent of winter usage.
· A summer sewer credit has been available for County users for years and has been applied by various other wholesale communities in this service area.
· To be consistent with similar billing practices of the County and other wholesale communities, it was determined appropriate to apply the summer sewer credit for Buffalo Grover users in this case.
· The projected revenue reduction for this summer sewer credit is approximately $200K and is proposed to be factored into the current rate study along with other changes in revenue projections to develop a revised sewer rate for the next rate cycle to begin in 2012.
· The Village understands the need for a consistent revenue stream to fund the operation of the regional transport and treatment of sanitary sewage and is in concurrence that a revised rate will need to be initiated to offset a revenue reduction for any summer credits.
· In addition, to ensure that consistency is maintained with billing on other similar contract services a Wholesale Customer Revenue Audit Program is being initiated in order to provide the County the necessary information on usage, billing, and credits to maintain accurate records and to better track such changes in the future.