Lincoln Park council approves deficit-elimination plan for water and sewer fund; leak-detection work underway

The Lincoln Park Mayor and City Council on Monday approved a deficit-elimination plan for the city's water and sewer fund and heard a staff report that leak-detection work has already identified multiple high-probability breaks.

The council voted to send the plan, which the city developed after its audit, to the Michigan Department of Treasury for review. City staff said the shortfall is largely driven by outstanding receivables, including grant reimbursements and unpaid customer water bills, and that the city will continue to adjust rates and monitor the fund going forward.

City Manager Lisa reported that the Department of Public Services' leak-detection program has been operating since late November. Staff have scanned six of 15 pressure zones, exercised 97 gate valves, flushed 32 hydrants and identified a number of probable leaks; 18 initially-marked leaks were investigated and two had become breaks that were repaired. City staff said one service leak was located and that crews are continuing repairs.

Council members asked whether rate adjustments would be used to reduce the shortfall; staff said rates have been adjusted in prior years and further adjustments are anticipated during the annual budget process. The resolution to approve the deficit-elimination plan carried on a roll call vote.

The agenda also included discussion of capital and operational steps to reduce water loss, including pressure relief valves and continued leak detection; staff noted the city may be required to supply additional detail to the Department of Treasury after submission.

The council's action does not itself change the city budget; staff said the plan documents completed steps and the path to eliminate future deficits and will accompany the city's audit package to the state.