A multi-million-dollar "gap" in the DuPage Water Commission's budget has left commissioners scrambling to find other sources of income.
That gap could lead to steep 42 percent rate increase in May for customers in more than 30 towns and unincorporated areas in DuPage County, the Chicago Tribune reports.
The proposed increase would reportedly cost an average family of three about $6.65 more per month, according to the Tribune. The commission has also suggested a $30 million short-term loan be taken out and paid for with $60 million in long-term municipal bonds, according to the Tribune.
"We got some holes in the ship, but we don't know how many," commissioner Donald Zeilenga said. "We want to make sure whatever action we take that we can plug them."
Robert Martin, the commission's general manager who is behind the proposal, said former financial administrator R. Max Richter spent the reserve money without informing board or staff members. Richter, who was forced to resign Oct. 23, is accusing by Martin of using funds too liberally to cover the difference in water rates charged by the city of Chicago, the commission's supplier, the Tribune reports.
"The information I received (from Richter) did not show that this water taking place," Martin said. "I got false information. I don't know why this happened."
Commissioner Frank Saverino defended Richter during a commission board meeting Monday night, saying Richter was doing as he was told, according to the Tribune.
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"We weren't charging people enough" for water, Saverino said. "My fear is that we are going to spend $100,000 (on attorney fees) to find nothing."
However, Saverino later took back his initial statement, deciding instead to side with the rest of the board, the Tribune reports.
The commission has since launched an costly investigation into the reason how the reserve funds -- set aside for construction projects and bond payments -- could have dwindled in just two years. They have hired prominent law firm Jenner & Block LLP -- at $500 an hour -- and financial consultant Philip Adams to sort through the records, according to the Tribune.
