GFRC Releases Water Rate Setting Report
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The Government Finance Research Center (GFRC) released a report on Water Rate Setting in Northwestern, Central, and Southern Illinois. The report findings span several key themes: the rate-setting process, challenges in rate-setting among disadvantaged communities, reasons for rate increases, the role of policy in rate-setting, water bill components, intergovernmental coordination as a means of increasing equitable rate-setting, and the definition of affordability.
In 2021, the Illinois General Assembly commissioned GFRC to conduct a “Water Rate Setting Study.” This three-year project produced a series of deliverables, including reports, datasets, presentations, and other dissemination products. The first report, published in June 2023, focused on Northeastern Illinois or the Lake Michigan Service Area (LMSA). This second report provides a comprehensive review of rate setting in Northwestern, Central, and Southern Illinois (NCSI).
The NCSI report required GFRC researchers to construct an original dataset of water rates collected directly from communities between July 2023 and March 2024. Through this effort, which included contacting 859 municipalities where residents receive water from municipal systems or water commissions and districts, GFRC
researchers were able to collect water rates from 70% of municipalities. This data collection initiative is the largest in Illinois and only the third among researchers nationwide to collect water rate data outside of urban areas.
Accompanying the report, GFRC also released eight policy briefs and three interactive webpages that present the report’s findings in a clear, engaging, and accessible format. These materials are designed to cater to a wide range of stakeholders, including policymakers, community leaders, researchers, and the general public.
Informed by our work on the Water Rate Setting Study, the GFRC developed a series of training modules for staff of water utilities, elected officials, press, and any members of the public interested in better understanding key concepts related to water systems’ financial sustainability and household affordability.
GFRC researchers are extremely grateful to the Water Rate Setting Study Intergovernmental Advisory Committee, which provided invaluable expertise and guidance throughout the work on this project over the last 3 years.
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About the GFRC
The purpose of the Government Finance Research Center (GFRC) in the College of Urban Planning and Public Affairs (CUPPA) at the University of Illinois Chicago (UIC) is to shape and inform public policy and scholarly discourse on government and public finance by: (1) identifying, planning, and executing research, therefore providing reports and informed analyses, (2) delivering educational opportunities and technical training, and (3) offering inclusive venues to convene national and local discussions on fiscal and governance issues.
For press or data inquiries, please email principal investigator and GFRC director, Dr. Deborah A. Carroll (deborahc@uic.edu).