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Portage council adopts 2025–26 budget, new water and sewer rates to take effect July 1
Summary
The Portage City Council adopted the fiscal 2025–26 city budget with no millage increase, authorized water and sewer rate changes and approved related fee resolutions; the council also endorsed saving for a projected $23 million water treatment expense and noted local support programs for low‑income households.
Portage — The Portage City Council on May 13 adopted the fiscal year 2025–26 city budget with no increase in millage rates and approved new water and sewer rates and service fees to become effective July 1, 2025.
The budget “represents no increase in millage rates, some decrease in your debt, considerable capital investment, continued full provision of municipal services” and staff recommended final adoption at the council’s May 27 meeting, City Manager Pat McGinnis said. "The budget represents no increase in millage rates, some decrease in your debt, considerable capital investment, continued full provision of municipal services as we've provided in previous years," McGinnis said.
The budget vote followed a public hearing and several hours of council review. Council members emphasized that water and sewer charges are restricted to utility operations only. "The water and sewer bills that we all pay, those funds can only be used to support the water and sewer system. They cannot be used to pay a firefighter," Council Member Urban said, explaining the legal separation of utility funds from general municipal revenue.
Why it matters: council members said the rate adjustments are intended to sustain utility service, cover pass‑through treatment costs the city pays to neighboring systems, and build reserves for anticipated capital projects. Urban told the council the city is setting aside money to address a projected $23,000,000 treatment or well‑rehabilitation expense in the future.
Details and process: McGinnis told the council that Portage’s sewer costs are largely set by the City of Kalamazoo because Portage sends sewage there under a long‑standing intergovernmental agreement. The council approved resolutions for water and sewer base charges, quarterly fees, franchise area fees and other service fees that will take effect July 1, 2025, after the published adoption notice.
Support for households: Council Member Burns noted Portage participates in a water affordability program administered by the Community Action Agency of South Central Michigan and provided intake numbers for residents seeking assistance: “The phone number to call is either 211, which is the easy 1 to remember, or (877) 422‑2726.”
What the council decided: By roll call the council approved final adoption of the fiscal 2025–26 budget and the accompanying fee and rate resolutions. The council also noted it paid down debt by $2.5 million in the budget process and that staff will continue capital investments and service provision.
Looking ahead: staff and council members said the utility rate actions are limited to utility funds and will be revisited as project needs and operating costs change. The council scheduled final budget adoption actions for the May 27 meeting where formal publication and any remaining procedural steps will be completed.
