The Village's water and sanitary sewer facilities are operated as part of an enterprise fund. This is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery—direct, indirect, and capital costs—are identified. This allows the community to recover total service costs through user fees if it chooses.
The water bill contains several charges that are all factors of the amount of water used.
- Operations & Maintenance - The cost to operate the entire water and sanitary sewer system used to produce and deliver water
- Debt Service - Retire existing bonds used to build the water & sewer system
- Capital Charge - Build reserve for expected capital improvements to the water system
- LCTC - Lake County Treatment Charge passed on by the County that treats the Village's waste water
The reverse side of the water bill provides additional details on the cost per 1,000 gallons.