Kalamazoo utility staff propose modest water and wastewater rate increases to fund $1B in capital work

Kalamazoo utility officials proposed a package of rate changes and capital investments at the Committee of the Whole meeting on Dec. 1, saying modest customer increases are needed to fund multi‑year repairs and upgrades across water and wastewater systems.

Director Baker told commissioners the five‑year capital program includes roughly $770,000,000 for drinking water work and about $240,000,000 for wastewater improvements. "Our water system provides retail water service to an area of about 190,000 people," he said, adding that City of Kalamazoo residents make up about 40% of that service area. Baker said the utility now operates 13 drinking‑water treatment plants — one of the largest all‑groundwater systems in Michigan — and a single wastewater reclamation plant that treats roughly 27,000,000 gallons per day.

Why rates: the presentation tied proposed increases to predictable needs: lead service‑line replacements, cast‑iron main replacements, water‑quality improvements (including iron removal) and system reliability upgrades. Baker said the city started an accelerated…