Kalamazoo City's Utility Policy Committee on Jan. 8 confirmed that water rates approved by the City Commission on Dec. 15 are now in effect and discussed the status of the city's water-affordability program.

Director Baker told the committee the commission adopted a rate ordinance in December and staff implemented an Option B approach intended to moderate year-to-year swings, producing a net residential commodity increase of about 6.5% and a slightly lower systemwide increase. "Those commodity changes were done in respect to that Option B," Baker said.

Baker also summarized the water-affordability program. "Four hundred sixty-eight families in Kalamazoo County were provided assistance over the last program year," he said, and the combined affordability and interior plumbing programs have provided more than $400,000 in assistance to county families. Eligible households include those up to 200% of the federal poverty level and people enrolled in categorical assistance such as the Supplemental Nutrition Assistance Program, Baker said. He advised customers with plumbing issues to contact the Community Action Agency of South Central Michigan at +1 (877) 422-2726 for enrollment and help.

Committee members pressed staff on how the program is funded long-term. Peter Hafner asked whether the $400,000 came from grant funding or from a previously discussed 1% rate set-aside. Baker said the affordability program remains grant-funded "for now," with current estimates extending grant support through 2027, and that the UPC previously voted to recommend up to 1% of rates be dedicated to affordability but the 1% has not been implemented because the city continues to rely on grant resources.

Members agreed the committee should monitor participation and funding and prepare for a transition if grant support ends. One member noted some plumbing repairs have averaged more than $3,000 per household, raising the program's per-beneficiary cost and the need to track enrollment and marketing to reach all eligible households.

The committee did not adopt a funding change at the meeting; staff were asked to continue outreach and to report back on sustainability options and revenue implications if grant funding declines.