Politics
Chicago Caps Water Bills at 2.5% Annual Increase for 1.1 Million Homes
The City Council measure would limit annual water and sewer bill increases to 2.5 percent for residential customers starting in 2027, covering 1.1 million accounts across Chicago wards.
How we reported this
Chicago City Council members advanced a revision to the municipal water rate ordinance on July 7 that caps yearly increases for residential customers at 2.5 percent beginning January 2027. The change applies to the 1.1 million household accounts served by the Department of Water Management and comes as candidates prepare for the 2027 municipal elections.
Why the revision surfaces now
City budget documents released in May project a 4.1 percent rise in operating costs for the water system through 2028, driven by infrastructure repairs on the 4,300 miles of mains. Candidates in several wards have cited these projections during recent forums when discussing household costs. The legislation states that rates will be reviewed every two years with public input required before any adjustment above the cap.
Chicago residents currently pay an average of $68 per month for combined water and sewer service, according to the 2025 rate schedule posted on the city website. The new structure would reduce that projected increase by roughly $9 per month for a typical single-family home by 2028.
Effects on neighborhood budgets
In the 35th Ward on the Northwest Side, where median household income sits near $58,000 per U.S. Census tract data, the cap would keep combined utility costs below 2 percent of after-tax income for most families. Local advocates note that seniors on fixed incomes in the 10th Ward have already seen bills climb 18 percent since 2022. The policy would apply the same percentage limit to multi-unit buildings, which house 62 percent of Chicago renters.
Policy analysts say the measure does not alter the existing discount program for low-income households, which reduces bills by up to 50 percent for qualifying participants. The ordinance requires the Department of Finance to issue an annual report on enrollment numbers and average savings by ZIP code.
Voting on final passage is scheduled for the July 22 council meeting. If approved, the Department of Water Management must publish updated rate tables by October 1 and mail notices to all residential accounts by December 15.