Lake Michigan Water Presentation v21 9-26-2012

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Meeting Wauconda’s Future Water Supply Needs:

Meeting Wauconda’s Future Water Supply Needs A Community Overview

This meeting is about you having a choice now about water in the future.:

A Community Overview Water – we drink, cook, shower, wash clothes, and flush our toilets with it. The quantity of water is limited, and the quality of it is vulnerable. By 2015, Wauconda must take ‘significant steps’ toward using its valuable water allocation or lose it . The cost of bringing in LMW is less than $1.50 a day – the cost of a bottle of water. This meeting is about you having a choice now about water in the future .

Introduction:

Introduction Timeline & Activities Water Supply Basics Key Concerns Water Supply Alternatives Affordability November 6 th Ballot Q&As

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Timeline & Activities Water Supply Basics Key Concerns Water Supply Alternatives Affordability November 6 th Ballot Q&As

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In 2006, the Illinois State Water Survey (ISWS) confirmed that Wauconda “had little room, if any, for increased pumpage in the future.” Source: Water Supply Planning White Paper Timeline and activities

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In 2007, the Village began assessing the sustainability of Wauconda’s water supply. Timeline and activities The Goals: T o determine if current supplies will meet future needs, both quantity and quality. To research water supply alternatives .

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. The Village’s population growth is expected to increase by 28%, from 13,603 in 2010 to 17,439 in 2040 . Source : CMAP 2040 Forecasts, January 2011 Timeline and activities Timeline and activities Wauconda’s existing well structure will not meet future growth and demand. Wauconda But the “real issue of concern is groundwater contamination .” Source: 2011 Water Supply Planning White Paper

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LMW is a clean, sustainable water source Naturally soft water Reliable and safe for future generations WHY SWITCH TO LAKE MICHIGAN WATER? Learning that the quantity and quality of drinking water may be at risk, the Village pursued a Lake Michigan water allocation permit. Why? Timeline and activities

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In February 2011, after a lengthy process , the Village was awarded a LMW allocation . Timeline and activities Next Steps: By 2015, Wauconda must take ‘significant steps’ toward using its valuable water allocation or lose it . Wauconda Lake Communities seeking new allocations. Antioch – Wauconda – Fox Lake – Lake Zurich – Lake Villa Lindenhurst - Long Grove – Lake County

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Timeline & Activities Water Supply Basics Key Concerns Water Supply Alternatives Affordability November 6 th Ballot Q&As

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Where does our water come from? Wauconda obtains its public water supply from groundwater. Four deep wells 970 to 1280 ft. deep Water supply basics Four shallow wells 104 to 325 ft. deep

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Water supply basics Ground water is supplied by “aquifers.” An aquifer is an underground formation of permeable rock, loose gravel, sand, or silt that provides water when tapped by a well.

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Water supply basics All of Northwest Lake County obtains its water from shared aquifers . One of our largest shared aquifers Cambrian-Ordovician. “The aquifer system is under stress from extreme ground-water withdrawals…especially in the Chicago, Illinois area.” Source: U.S . Geological Survey Wauconda

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. When water is pumped from wells, the water table of the aquifer is drawn down. Example: In July 2012, Well #10 could not recharge water levels as fast as the draw down was occurring. Water supply basics

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Timeline & Activities Water Supply Basics Key Concerns Water Supply Alternatives Affordability November 6 th Ballot Q&As

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Key concerns Wauconda Groundwater contamination of existing shallow wells . Treatment and costs for radium and barium levels in existing deep wells . Mining of regionally shared aquifers – restricting water availability in the future. The 3 Key Concerns are:

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Key Concern #1: Groundwater contamination of shallow wells . Some wells in unincorporated neighborhoods have already experienced contamination (88 private wells). Key concerns Although the contamination is not directly linked to the superfund site currently on the National Priorities List... Experts cannot state that Wauconda’s shallow wells are free from any future potential impact.

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Key Concern #2: Radium and barium levels in deep wells . Lake County’s deep aquifers are currently being treated to meet the USEPA’s regulatory thresholds for radium and barium levels. The existing EPA treatment requirements for these naturally occurring contaminants are anticipated to increase . Increased standards will lead to significant increases to treatment and disposal costs of these radioactive wastes . Key concerns Wauconda

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Key concerns Sustainability: Wauconda shares its aquifers with many immediate neighbors in northern Illinois and… Wisconsin Indiana Iowa Missouri Minnesota Key Concern #3: Mining of regionally shared aquifers Deep bedrock community water supply wells in northern Illinois.

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Why worry about Wauconda’s water supply now? Costs for Lake Michigan water will never be lower . Our valuable Lake Michigan water allocation would be re-distributed to waiting communities. Key concerns . “Even under normal climatic conditions, Northeastern Illinois Planning Commission (NIPC) projects water shortages for 11 townships in the Chicago metropolitan area by 2020.” Source: A Plan for Scientific Assessment of Water Supplies in Illinois (ISWS)

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Lost Value . Key concerns The economic impact of water shortages would be evident in the community. Socio-Economic Drought Non- Agriculture Sector Tourism & recreation Public services L andscaping services Industries & businesses Property values Agriculture Sector Crops & pasture losses Livestock losses

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Timeline & Activities Water Supply Basics Key Concerns Water Supply Alternatives Affordability November 6 th Ballot Q&As

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Wauconda Water supply Alternatives What are Wauconda’s alternatives? BUILD MORE DEEP WELLS BUILD MORE SHALLOW WELLS SWITCH TO LAKE MICHIGAN WATER

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Water supply Alternatives WHY NOT BUILD MORE WELLS? Water quantity of groundwater wells is shared and limited. Water quality of wells can be affected by: Landfill Leachate Agricultural Runoff Industrial & Commercial Activities Abandoned Wells Chloride in Road Salt Naturally Occurring Contaminants (examples: radium and barium)

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Water supply Alternatives WHY SWITCH TO LAKE MICHIGAN WATER? R eliable, high quality water supply. Less susceptible to mining due to regulatory oversight. No risk of local groundwater contamination . Naturally soft water eliminates the need for in-home water softeners . Existing municipal wells can be maintained as an emergency supply . Lake Michigan water would positively support future property values . Marketability : Business activity and growth would be enhanced. Benefits:

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Timeline & Activities Water Supply Basics Key Concerns Water Supply Alternatives Affordability November 6 th Ballot Q&As

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Lake Michigan water will never be as affordable as it is today. Affordability

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COST OF LAKE MICHIGAN WATER? External infrastructure: $41 million general obligation bonds (property tax) Wauconda’s internal distribution system: $9 million alternate revenue bonds (water rates) Affordability Approximately $50 Million Project

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WHY WILL THE MAJORITY OF THE COSTS BE COVERED BY PROPERTY TAXES? Alternate revenue bonds are required to be secured by an additional 25% more revenue than what is needed to pay the bond. By initiating the majority of funding through GO bonds (property taxes), repayment of the bonds will be more secure and less expensive . The resident’s contribution to this funding is tax deductible . The Village would have liked to finance LMW through GO bonds, but its debt limit is capped at $41 million. Affordability Property taxes are the only funding mechanism that can support GO bonds, which have the lowest interest rates available…at their lowest rate since the 1970s.

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WHAT IS THE MONTHLY COST OF BRINGING IN LAKE MICHIGAN WATER ? Affordability Average Monthly Cost per Family The monthly cost for a family of four living in a $200,000 home will gradually increase to $43. After the bonds are paid this cost will be eliminated.

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HOW DID YOU DETERMINE THE MONTHLY AVERAGE COSTS? Affordability Average Property Tax $ 200,000 home = + $390 annually OR $32.50 per month = $43 Month $10.60 per month (Minimum users $3.52) Family Water Bill 72,000 gallons = + $127 annually OR Lake Michigan Water

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WHAT WILL IT COST TO STAY ON WELL WATER TO MEET FUTURE DEMAND? Additional deep wells will be necessary to meet projected water demands. Advanced treatment and storage will be necessary. Distribution system will need improvements. Affordability Approximately $20 Million Project

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WHAT IS THE MONTHLY COST TO STAY ON WELLS? Affordability Average Monthly Cost per Family If the Village continues to receive its water supply through wells, t he average monthly cost for a family of four will be approximately $24 (water rates).

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HOW DID YOU DETERMINE THE MONTHLY AVERAGE COSTS? Affordability = $23.50 M onth (Minimum users $3.52) Family Water Bill 72,000 gallons = + $282 annually OR MAINTAIN WELL WATER

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LAKE MICHIGAN WATER VS. AVERAGE MONTHLY UTILITIES? Average Monthly Utility Costs On $200,000 Home Electricity - $120 Cable TV - $105 Cell Phone - $98 Water/sewer - $78 (+ $10.60 LMW or + $23.50 for Wells) Natural Gas – $75 Internet - $35 Water Softener Salt - $20 Affordability

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WHAT IS THE COST TO UNINCORPORATED WATER CUSTOMERS? Approx. 400 homes in unincorporated areas have hooked up to the Village’s public water system to avoid contamination in nearby shallow wells. Currently, these homeowners pay 25% more for Village water . Affordability

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Timeline & Activities Water Supply Basics Key Concerns Water Supply Alternatives Affordability November 6 th Ballot Q&As

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November 6 th BALLOT HOW CAN WE SECURE LAKE MICHIGAN WATER? 2012 NOVEMBER REFERENDUM QUESTION A question on the November 6 th election ballot will seek approval of up to $41,000,000 for the purpose of bringing Lake Michigan Water to Wauconda.

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Wauconda If the referendum passes : Infrastructure will be built to bring Lake Michigan water to Wauconda. The Village will be able to use its allocation. If the referendum fails: Wauconda will lose its allocation. Communities and collar counties will pursue remaining allocations. Wauconda will continue to depend on groundwater into the future. November 6 th BALLOT

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Now, it’s time for the community to decide The Village has secured a hard to obtain portion of the remaining Lake Michigan water allocations. On November 6th, the Village’s elected officials are seeking your input into this very important decision. The choice to secure clean, sustainable Lake Michigan water is up to you! This, in its truest form, is government by the people. November 6 th BALLOT

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Questions? A Community Overview

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