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Commission approves wholesale rates and adopts modest retail water/sewer increase
Summary
Mount Clemens approved consultant-recommended wholesale water and sewer rates and narrowly adopted a 2.2% average retail water and sewer increase (option 2) after debate about surpluses, capital needs and rate math.
The Mount Clemens City Commission on July 6 approved updated wholesale water and sewer rates and service fees and separately adopted a modest retail water and sewer increase intended to help close operating shortfalls and maintain working capital.
After a presentation from the city’s consulting engineer on rate methodology, commissioners amended a motion to separate wholesale and retail items and first approved the wholesale water and sewer rates and service fees recommended in the consultant’s report. The commission then reopened discussion on retail rates and ultimately adopted the retail option identified as a 2.2% average increase (option 2) by roll call.
Consultants explained their choice of options by comparing budgeted expenditures, three-year usage averages and projected revenue needs; one proposed scenario produced an average increase of about 4.5% and a third option was characterized as a 3% increase in earlier materials. Commissioners who opposed a larger increase cited an operational surplus and the burden on residents; proponents said incremental increases are necessary to build working capital for capital needs and to avoid larger future rate shocks.
Commission debate included specific line-item questions about fixed service charges and apparent inconsistencies in the rate table. A commissioner flagged a suspected mathematical mismatch in the table and consultants explained that percentage figures reflect average impacts across all customers and commodities, not identical percentage changes to every line item.
Vote results: the wholesale rates and service fees were approved by roll call (motion to amend and then approve). The later motion to adopt retail rates under option 2 (2.2% average increase) passed by roll call with several recorded "no" votes.
Next steps: Staff and the consultant will implement revised rate schedules and include updated charge tables in billing documentation; commissioners asked staff to provide comparative data from neighboring jurisdictions and to continue monitoring consumption trends and capital funding needs.
