City staff presented a proposed three‑year rate schedule that would raise wastewater rates by about 11% and water rates by about 7% across 2026–2028, citing a rate study by design architect Arcadis. Staff said the ordinance before the council formally adjusts wastewater rates while including water figures in the whereas clauses to improve transparency about how bills may change.

Staff explained that the municipal tariff system calculates charges in units (100 cubic feet) and that minimum bills are based on four units (400 cubic feet). The meeting record shows the current minimum base water charge at $24.95 and the current wastewater base at $29.83; staff calculated that a 7% water increase would move the water minimum to approximately $26.70 in 2026 and a subsequent 7% step in 2027 to roughly $28.57, with a potential further step in 2028 depending on revenue sufficiency.

The administration emphasized that the 2028 review will evaluate revenues versus capital and operational obligations and determine whether the scheduled increases remain necessary; staff also proposed considering CPI‑based adjustments after that review to avoid repeated multi‑year spikes. Committee members asked for clarity about why water numbers appear in the document when the safety‑service director — not council — sets water rates; staff said the water figures are included to give the public a clear, single reference for why and by whom charges may change.

Staff said the rate recommendations reflect anticipated capital projects, including planned upgrades to wastewater facilities, and conservative growth projections. The administration also referenced intergovernmental service arrangements (for example, Clinton Township) that can affect average bills.

Next steps: council will consider the ordinance that formalizes wastewater increases; staff said the 2028 review and possible CPI indexing would be revisited then. Councilmembers asked staff to add clarifying language or a time window (first quarter 2028) for the revenue sufficiency review.