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Owosso council debates water/wastewater five-year plan, schedules town hall on rate options
Summary
Council members reviewed a five-year water/wastewater rate plan, discussed whether mid-plan rate changes were possible, confirmed the nitrification towers were removed after bids exceeded estimates, and scheduled a March town hall for public input; staff will present options in April.
Council members spent the meeting discussing the city’s five-year water and wastewater rate plan, how and when rates can be adjusted, and next steps for public engagement.
A council member asked whether the council could have increased planned rate steps mid-plan when construction and inflation costs became apparent. City staff explained that while a future council can revisit and change a previous council’s multi-year plan, adjustments are subject to procedural rules (including reconsideration under Robert’s Rules of Order) and funding availability. Staff said they had informed the previous council that the adopted rate structure would be insufficient to cover certain scope items.
Council members and staff discussed a large wastewater project — the transcript referred to nitrification towers that were part of an earlier plan — and said bids for that component came back higher than budgeted so the towers were removed from the current scope. Staff explained that even if rates were raised to cover additional debt service, the city would still need to obtain additional bonding or financing; the transcript referenced a previously authorized bond of about $19 million that would not have been sufficient to pay for the full scope if the towers were reinserted. Staff cautioned that state funding availability and borrowing conditions can change and that some grants/loans are planned years in advance.
Council members also raised possible mitigation measures for residents, including whether the city could change billing from quarterly to monthly to ease household budgeting. Staff said they would examine billing and other peripheral policies and bring options forward.
The council scheduled a town hall at the Armory at 6:30 p.m. in March (date not specified in the record) to gather public feedback. Staff indicated they expect to present concrete options to the council in April, including partial lists (75% or 50% of the previously planned projects) and an "a la carte" menu of choices that would show the tradeoffs for each option.
