The Saginaw City Council voted to temporarily waive late-penalty charges on city water and sewer accounts during the period that supplemental nutrition assistance program (SNAP) benefits are partially or fully suspended and for one additional billing cycle after benefits are restored.
Councilmember Hammond, who introduced the motion, said the waiver was aimed at preventing “compounding the issue with late fees” for families already facing food and energy insecurity. “It’s minimal from the city’s financial perspective but it’s the difference for a family,” she said. The measure authorizes the city manager or a designee to set start and end dates based on official state or federal notifications and to implement the policy administratively.
Supporters argued the short-term revenue loss would be small while offering immediate relief to households deciding between paying water bills and buying food. Councilmember Ball said the moratorium could mean “$30, $40 goes a long way in some people’s household,” and urged prompt action to support children and families. Opponents and cautious voices urged staff to consider bond covenants, long-term rate impacts and the need for broader policy review; one councilmember recommended waiting for the planned rate study before eliminating fees permanently.
City manager Tim Madison told the council the city’s financial model for the water system is not built on late fees and that staff could administer the temporary waiver. “This would start with November because the benefits ended Nov. 1,” Madison said when explaining timing scenarios; he added the waiver would apply for the months tied to the SNAP suspension plus one extra billing cycle.
The motion passed after debate and a procedural call for the question. The council authorized the manager to implement the temporary policy, instructing staff to provide specifics on start/end dates and any reporting back to council. The council also discussed complementary steps such as referral to assistance programs (DHS, United Way, CAC) and the possibility of a future ordinance or rate-study-driven change to billing structure.
Next steps: Staff will determine exact dates based on state or federal notices and implement the waiver administratively; councilmembers asked for follow-up information about fiscal impact, the amount of revenue generated by late fees historically, and how any temporary relief would interact with shutoff and arrearage procedures.