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Mount Clemens commission approves water, sewer rate increase and to join Great Lakes Water Authority
Summary
After extended debate, the commission approved retail water and sewer rate changes that staff said average $13.40 more per month for a typical residential customer; the city will move to join the Great Lakes Water Authority and close its treatment plant.
The Mount Clemens City Commission voted to approve the retail water and sewer rate resolutions recommended by consultants from Plant Moran, a decision commissioners described as difficult but necessary to fund capital repairs and the city’s transition to the Great Lakes Water Authority (GLWA).
Plant Moran presented five rate sheets and recommended a water consumption rate of $5.79 per unit and a monthly fixed water service charge of $11.10 for a 5/8" meter; it recommended a sewer consumption rate of $7.15 per unit and a fixed monthly sewer service charge of $9.22. Staff said the average residential impact using 4.9 units per month would be about $13.40 more per month. Shipman told the commission the city plans to shutter its water treatment plant and join GLWA, and noted the city has obtained grants and state loans that may include substantial debt forgiveness to help offset costs.
Commissioners debated two modeling approaches: a larger initial increase (the approach in the staff model) versus spreading increases over multiple years. One commissioner proposed a friendly amendment to apply a 10% increase this year and a similar 10% the following year; supporters of the staff model said the larger first-year increase protects long-term cash flow, avoids tapping the general fund and reduces the risk of much larger increases later if the model is updated. Commissioners raised concerns about residents near the poverty line and businesses that use large volumes of water.
Following debate, the commission called the roll and passed the retail water and sewer rates resolution; the roll call recorded one "no" vote by the commissioner identified in the record as Rick. The commission separately approved wholesale water rates, District D wholesale sewer rates (staff listed a District D rate of 31.89 per MCF) and other routine fee resolutions.
The decision moves forward a multi-year capital plan that staff says includes main replacements, meter replacements, hydrant and clarifier repairs, biosolids handling upgrades and other infrastructure work. Staff said the recommended model aims to generate sufficient cash up front to fund a 10-year capital schedule and reduce future volatility; the commission said more public information and assistance options will be available for residents who need help phasing the cost.
