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Coldwater council adopts water and wastewater rate adjustments to support capital projects
Summary
After a cost‑of‑service presentation, the council approved a one‑year rate adjustment designed to stabilize operating income and reserves and to help prepare for a potential $30 million wastewater expansion in 2028; average residential bills would rise modestly (examples: water about 75¢ and wastewater about $1.20 for a 5,000‑gallon month).
The Coldwater City Council on May 11 adopted rate adjustments for water and wastewater after staff presented a cost‑of‑service study outlining near‑term revenue needs and long‑term capital plans.
Paul Jekupjack presented five‑year projections showing that without rate adjustments operating income and cash balances would erode as capital projects are completed. The staff recommended a single‑year increase to stabilize operating income; the presentation discussed a 3.9% water example and a 3% wastewater example that would increase an average residential water bill by about $0.75 per month (5,000 gallons) and wastewater by about $1.20 per month (5,000 gallons), according to the materials shown to council.
Jekupjack said the city is planning for a possible wastewater treatment expansion with an estimated total project cost near $30 million and an anticipated bonding need around 2028. He said current cash reserves could reduce the bond size and that the proposed rate changes maintain debt coverage ratios while preparing for future capital needs. The council adopted Resolution 26‑50 to implement the rate adjustments effective July 1.
Council members asked about what large projects the projections supported (examples: new water tower or package plant, lead service replacement loan from the state) and how the increases would affect different usage tiers; staff said the increase would be applied through the commodity charge so customers could still control bills by reducing usage.
