Frequently Asked Questions about 2026 Utility Rates

Why now? 

The City had planned to replace lead and galvanized water service lines within the EPA’s original 30-year timeline. However, the EPA recently shortened the required timeline to just 10 years. In January 2026, the Illinois Environmental Protection Agency adopted the significantly shortened the required timeline for all Illinois communities.  

The City has worked for a number of years to avoid significant water and sewer rate increases by postponing large-scale infrastructure projects and relying instead on interim solutions. However, the time has come when these improvements can no longer be delayed. 

At several public meetings over the past two years, and at recent budget workshops, the City has discussed the need to adjust water and wastewater utility rates. These adjustments are necessary to meet required federal mandates and fund needed improvements. 

There are lead water service lines? Is my drinking water safe? 

Yes your drinking water is safe. St. Charles’ drinking water source does not contain lead. In addition, the City’s water mains that deliver water to homes and businesses are not made of lead. However, lead was commonly used in plumbing materials prior to the mid-1950s, and its use was not fully banned until 1986. A water service line delivers water from the City’s water main to the home or business. If a property’s water service line or internal plumbing contains lead, it can introduce lead into the drinking water. 

What is an unfunded mandate? 

An unfunded mandate is a law/regulation that requires the City to implement a state or federal program, but does not offer the City a way to help pay for the program. So the City must implement the program and use its own financial resources to pay for it. 

Why can’t we use reserves? 

The City has allocated $11 million from fund reserves over the last 3 years for water utility improvements. However, this approach is not sustainable long term. 

Why can’t a rate increase be just a part of the cost and pay the rest of the costs some other way? 

The City has allocated $11 million from fund reserves over the last 3 years to assist in paying for critical water utility improvements. However, this approach is not sustainable in the long term.  

While the City always looks to apply for grants to help pay for improvements, St. Charles’ profile generally does not meet the eligibility criteria for these funding opportunities. The City is also working with state legislators to seek an extended timeline for lead service line replacement. 

Does it all have to be done at once? Can we tackle one project at a time? 

The City had planned to replace lead and galvanized water service lines within the EPA’s original 30-year timeline. However, the EPA recently shortened the required timeline to just 10 years. 

The City has worked for a number of years to avoid significant rate increases by postponing large-scale infrastructure projects and relying instead on interim solutions. However, the time has come when these improvements can no longer be delayed. 

Why didn’t we hear about this sooner? 

At several public meetings over the past two years, and at recent budget workshops, the City has discussed the need to adjust water and wastewater utility rates. These adjustments are necessary to meet required federal mandates and fund needed improvements.  

The City had planned to replace lead and galvanized water service lines within the EPA’s original 30-year timeline. However, the EPA recently shortened the required timeline to just 10 years. In January 2026, the Illinois Environmental Protection Agency adopted the significantly shortened the required timeline for all Illinois communities. 

Instead of spreading the work and associated costs over 30 years, the City must now make a significantly larger investment into a larger-scale project to complete the replacements in a third of the time. 

If you knew this was coming, why didn’t we start putting money towards it a couple of years ago? 

In 2022, the City began developing a plan to replace lead and galvanized water service lines in compliance with state and federal requirements that allowed up to 30 years for their removal. The plan included allocating approximately $2.6 million annually from the Water Fund to responsibly and sustainably complete these replacements. 

However, in late 2024, the Illinois Environmental Protection Agency adopted updated U.S. EPA regulations requiring that these service lines be replaced within 10 years — a significantly shorter timeframe than the original 30-year schedule. In January 2026, the Illinois Environmental Protection Agency adopted the significantly shortened the required timeline for all Illinois communities. 

As a result, the City must now increase its investment significantly to meet this accelerated mandate. 

Our utility rates are tied directly to the cost of operations and maintenance. We don't make a profit on these services. 

Why can’t we get grants or loans or bonds to pay for it? 

While the City always looks to apply for grants to help pay for improvements, St. Charles’ generally does not meet the eligibility criteria for these funding opportunities. The City is also actively working with state legislators to seek an extended timeline for lead service line replacement. 

The City has a number of future projects that may require the City to borrow money or seek loans. The City is taking a strategic approach with its options of funding various projects to ensure that the City does not overburden rate payers with too much debt that must be repaid at a higher interested costs in future years.  

Why do I have to pay for this if I don’t have lead service lines? 

Lead water service line replacement is an investment in community infrastructure and public health. Being part of a community means sharing the cost of services and improvements that benefit everyone—just as residents fund police and fire services even if they never call 911, or help pay to repave roads they may not drive on. 

What if I can’t afford the new rates? 

We understand the financial impact these regulatory changes may place on families and businesses. To help offset water rate increases for lead service line replacements, the City is implementing a 5% reduction in electric rates until further notice. 

We will connect households in need with Utility Bill Assistance programs. And the City is looking into launching a Budget Billing program that offers residents the option to pay a consistent amount all year on their utility account to avoid peak usage/seasonal spikes. 

The City is a non-profit organization. Our utility rates are tied directly to the cost of operations and maintenance. We don't make a profit on these services.  

What can I do to lower my water bill? 

Small changes in daily habits can significantly reduce water use and help lower your monthly water bill.  

  • Run full loads in dishwashers and washing machines 

  • Shortening showers by just a few minutes can save gallons of water each day 

  • Turn off the tap when brushing teeth or shaving 

  • Use cold water when possible--this avoids wasting water waiting for it to heat up 

  • Fix leaks—a dripping faucet or running toilet can waste hundreds of gallons per month 

  • Install low-flow showerheads, faucets, and toilets 

  • Water lawns early in the morning or evening 

More information and resources is at Conserve Water for Kane, a water conservation initiative led by Kane County.