Detroit Water Department proposes 3.5% rate increase for FY2026; officials outline staffing, lead-line goals and budget drivers

Detroit Water and Sewage Department Director Gary Brown told the Detroit City Council on Monday that the department’s proposed fiscal year 2026 operating budget includes a 3.5% across‑the‑board rate increase for water, sewer and drainage services.

Brown said the department’s overall systemwide revenue requirement is roughly $521.3 million, which the department offsets with non‑retail and non‑rate revenues before arriving at a rate revenue requirement the department expects to collect through customer charges.

Brown and Istaka Raman, DWSD’s chief financial officer, said the proposal was shaped by several drivers: an increase in Detroit’s share of the Great Lakes Water Authority (GLWA) wholesale revenue requirement (which they said increased by about $12.3 million), a $6.1 million rise in estimated bad debt, higher pension costs and new personnel costs. Raman said departmental (direct) expenses rose about 5.6% and non‑departmental (indirect) expenses about 5.2% compared with FY2025.

Raman said the proposal adds a net 20 full‑time field positions, all assigned to operations rather than administration, and that non‑personal expense increases…