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St. Charles City Council voted 8-2 to restructure water, sewer, and electric rates over the next four years, with the bulk of the increases funding a state-mandated lead service line replacement program affecting roughly 3,400 city water customers.
The new rates take effect for bills issued after June 1, 2026. While water and sewer charges will rise, electric rates will drop 5% across all customer classes, serving as a partial offset for residents.
Here's what to know:
Water rates: The agenda document states the following:
Water base rates for most customers would increase about $13-$16 per month, or approximately 90% more than existing base rates, and then a $9-$12 per month increase in 2027, or 35% increase, with moderate 10% and 5% adjustments in 2029. Water usage rates would increase similarly with the usage rate of $6.00 per one thousand gallons used increasing to $11.70 effective with June 2026 bills and then $16.38 in 2027, with moderate increases in 2028 and 2029.
Sewer and electric: Sewer charges will rise 10% in each of the next three years and 8% in 2029. Electric rates drop 5% across all classes with no further changes planned. Below is a sample utility bill featured in the agenda document.
Why this is happening: The lead service line replacement is an unfunded mandate from the state, which shortened the original 30-year compliance window to 10 years. The annual cost is approximately $8.4 million for the next decade.
The city has applied for grants but doesn't qualify because St. Charles is considered too well-resourced. The ordinance also funds broader infrastructure work the city says is overdue and increases system capacity to support long-term community growth and development.
The “no” votes: Two officials voted against the measure, arguing the city should have done more to identify alternative funding sources rather than placing the full burden on ratepayers. Mayor Clint Hull committed to keep searching for alternative funding even with the ordinance now in effect, calling Monday's vote "not the end" but "the beginning."
In a release, the city said it has funded the first year from its reserves to help minimize the impact on residents and businesses.
Read the full city press release and watch the full City Council meeting recording.
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