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TO:
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Citizens Served by the Northern Moraine Wastewater Reclamation District
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FROM:
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Kenneth A. Michaels Jr., President
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DATE:
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April 14, 2009
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RE:
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Recent Increases in User Fees
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Memorandum
As has occurred over the past several years, the District again increased its rates a few dollars per quarter. Several years ago, the District made a deliberate and published decision to increase rates approximately 7% each year. Many other governmental entities increase their rates and fees in bits and pieces, sometimes by drastic proportions, which is not good financial planning for you or your government.
As has happened in past years, the District’s operating expenses continue to proportionately increase more than our annual rate increases. Still we hold to disciplined rate increases.
No one is oblivious to the financial difficulties facing many of our citizens. The trustees and employees of the District are facing the same hardships as everyone else. The District is facing unprecedented defaults by our citizens in their quarterly payments. These defaults require the District to record liens on properties. Where foreclosures are filed, the District sometimes waits years for payment of user charges, with penalties and interest accruing. Meanwhile, aggregate costs are increased for each of you because of your neighbors’ defaults.
Recently, District employees have received offensive communications by a few unenlightened citizens. Please note some of the following facts:
· The rate increases are not to fund employees’ salary increases. In fact, except for one employee who was previously promoted to a managerial position, our employees are receiving no pay increase in the 2009-2010 fiscal year;
· Insurance rates keep increasing astronomically. The employees’ health plan, sponsored by Blue Cross Blue Shield of Illinois, sought a 19% increase for health insurance (as the company has with many other employers throughout the state this year). To avoid layoffs, the Board of Trustees was forced to switch coverage resulting in decreased benefits to your District’s employees; and,
· The District conducted a study last year encompassing municipalities providing wastewater treatment services and sanitary districts throughout Lake, McHenry, Cook, DuPage, and Kane Counties. The results were amazing. Your District was the second lowest cost wastewater collection and treatment service provider in a field of dozens of providers. Even with the graduated rate increases, your District is providing excellent service at a lower cost to you than throughout several surrounding counties.
So please, for those who have done so, do not make attacks on your District’s employees. They do not make policy; they are hired to protect your health and quality of life.