Owosso staff warns current water/sewer rates can’t cover planned fixes; council considers town-hall outreach

Owosso city staff told the City Council on Monday that the community’s planned water and sewer projects — including repairs at the wastewater treatment plant, lead service-line replacements and main renewals — exceed what the current rate structure will support and that council must consider rate increases to proceed.

The council continued a multi-meeting discussion of utility finances after Director Ryan Savanek and wastewater Superintendent Tim gave a detailed history of work since 2020, funding sources used and remaining capital needs. Savanek said the city has secured grants, principal-forgiveness and low-interest loans but that those awards are not enough to cover all projects without higher user rates.

Why it matters: The city’s underground water and sewer systems are aging, staff told the council. Without funding for projects the city raised as priorities — including cleaning a major interceptor, adding a retention basin to handle wet-weather flows, replacing nitrification towers and completing clarifiers — staff said the city faces increased risk of sanitary sewer overflows, permit violations and emergency repairs that would be costlier than planned rehabilitation.

“We don’t have the $20 million in the bank to do the reservoir or the $15 million to do the roughing towers,” Director Ryan Savanek said, describing the state and federal grants that reduce local borrowing needs but do not make the projects affordable at current rates. “We go for every penny we can.”

Savanek explained…