Overview: 2026 Utility Rates and Infrastructure Funding

Utility rates are being adjusted to ensure that the City’s Electric, Water and Wastewater utilities can meet the operating, capital and debt service needs of each utility based on the 10-year planning documents completed for each.

• Lead service line replacement is an unfunded mandate: State law requires the City to replace all lead water service lines, but the State does not provide any funding to cover the cost of this estimated $84 million project.
• Your drinking water is safe. St. Charles’ water source and City-owned water mains do not contain lead. However, some older homes may still have lead service lines or plumbing installed before lead was banned in 1987, which can introduce lead into drinking water.
• The unfunded mandate was accelerated from 30 years to 10 years: In 2024, Illinois EPA updated regulations requiring lead service lines to be replaced within 10 years instead of the previously allowed 30 years, significantly increasing the annual cost of the program.
• The City has pursued grants and funding assistance: The City has applied for grants and continues seeking funding, but many programs such as IEPA low-interest loans prioritize communities with lower median household incomes and other differences.
• Electric rates are being reduced to help offset the increase: To help lessen the overall impact on residents, the City is reducing electric rates by 5%, without affecting electric service levels.
• A portion of the water rate increase is planned to be temporary: A significant portion of the water rate increase is tied to the 10-year timeline to replace all City lead service lines. Once the project is completed, the City will re-evaluate the rates.
• Using City reserves to fund the project: The City has allocated General Fund reserves in the amount of $11 million over the last 3 years to try and assist in getting critical water-related infrastructure projects done to reduce the overall financial burden on households from rate increases.
• Maintaining and updating aging water infrastructure: The City must also continue replacing more than 80 miles of water mains that are 75–100 years old to reduce costly water main breaks, prevent service disruptions, and maintain the reliable delivery of 6.9 million gallons of water each day.
• Rates can be reevaluated if conditions change: The City will continue to monitor grant opportunities, legislative changes and/or other alternative revenue sources. If circumstances present an opportunity to re-evaluate rates, the City can do so.
• The City doesn’t make a profit on utility services: Our utility rates are set to cover the cost of operating and maintaining the system.
• Supporting future growth and development: Proper utility rates are essential to maintaining and expanding utility infrastructure, particularly the eastside sanitary sewer trunk line, to meet current demand and support future redevelopment opportunities.

Review the rate schedule and a sample bill.