Grand Rapids rate study would raise Cascade water rates about 10.8%; sewer rates proposed to fall

Tyra Bruggi, utility financial officer for the City of Grand Rapids, told the Cascade Charter Township Board of Trustees on Nov. 19 that a city rate study would raise Cascade’s water rates by about 10.8% while lowering sewer rates about 2.6%.

Bruggi said those changes translate to an average quarterly household bill increase of about 3%, “which is about $9 every 3 months,” for an average Cascade home that receives both water and sewer service. She emphasized that the net effect varies: “If you’re on water but have a septic system, you will just see the water increase,” she said.

Why the increase? Bruggi attributed most of the water increase to capital additions recorded on the utility’s books — “we put into service $14,000,000 worth of water mains for Cascade Township specifically,” she said, citing the Berger Goodwood extension that connected homes previously affected by PFAS‑contaminated wells. She added that national borrowing costs (used to calculate the utility’s contractual return on investment) have risen and operational costs such as labor, electricity and chemicals have increased.

Bruggi explained that even when construction is funded through low‑interest loans or principal forgiveness, the asset’s depreciation is recorded and spread over time, which raises a community’s revenue requirement. “Even if we didn’t pay a penny for it, we still have to take that full cost and build it into our rates…eventually we’ll have to repair it, we’ll have to replace it,” she said.

The sewer side, by contrast, shows a modest decrease because fewer new sewer assets were added this year and because the sewer system receives offsetting revenue (natural gas produced by digesters at the treatment plant), Bruggi said.

Bruggi described the City’s community affordability program as another important factor. Under the program, the utility sets aside 12.5% of penalty revenue for household assistance (administered through the Kent County Community Action Fund) and uses the remaining 87.5% to blunt community rate increases. She said the utility collected a little under $1,400,000 in penalty fees last year and set aside $250,000 for household assistance for the next year.

“This year we had about $540,000 to apply from that…and almost all of that went to Cascade Township,” Bruggi told the board, explaining the distribution is focused on communities with the largest proposed increases and varies year to year.

Bruggi outlined the process and schedule: the study work was completed in October and November, the utility advisory board reviewed the proposal, a 30‑day public comment window is open, and the Grand Rapids City Commission is scheduled to vote Dec. 16. If the commission approves the rates, they would take effect Jan. 1, 2026.

Board members and residents asked technical questions about retail versus wholesale customers, representation on the utility advisory board and whether recent neighborhood hookups would show up quickly enough in three‑year average consumption to reduce rates. Bruggi said Cascade is represented on the advisory board (typically by Eric Thorn), that wholesale customers maintain their local mains while the city maintains treatment and major assets, and that volume changes are measured on a three‑year average so any benefit from new connections would take time to appear.

Bruggi said the full rate study — including detailed math and schedules — is available on the City of Grand Rapids website and offered to provide Cascade staff with the tailored presentation and follow‑up data on connection counts.

The utility advisory board and the city commission have the remaining approvals. The township has limited unilateral authority to change the overall methodology because it is contractual among the partners, but Bruggi said some community‑specific phasing or adjustments can be requested through the advisory board.

Next steps: the public comment window is open and the City Commission will vote Dec. 16; residents wishing to examine the full rate study or submit comments were directed to the City of Grand Rapids website or to contact Bruggi directly.