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Livonia DPW proposes 6.16% average water/sewer rate increase to fund main replacements and lead-line work
Summary
City staff proposed a variable-rate increase that would raise the average residential water bill by about $4.60 per month (6.16% for a typical quarterly 20-unit user) to cover Great Lakes Water Authority and Wayne County pass-through costs and to fund capital projects including water-main replacements and lead-service-line work.
DPW Director Hopper presented the city’s proposed water and sewer rates for fiscal 2026–27 and said the recommendations respond mainly to external rate increases from the Great Lakes Water Authority and Wayne County and to urgent capital needs.
Hopper told the council that the city purchases water and sewer services from GLA and Wayne County and that those wholesale charges are passing through to Livonia customers; he said GLA’s systemwide rate changes averaged 5.8% and the city’s estimate for sewer increases from the county is 6.58%. To maintain infrastructure and meet debt-service and capital program needs, the DPW proposed changing the variable portion of rates while holding fixed (ready-to-serve) charges steady. Hopper said the proposal would raise an average residential customer’s bill by $4.60 per month (about $13.80 per quarterly bill), a 6.16% increase for the 20-unit quarterly user.
Why it matters: The water/sewer fund is an enterprise fund that does not receive general-fund support; the department projects roughly $55.3 million in total water/sewer expenditures next year, covering GLA/WC purchases, operations, capital projects and debt service. Hopper said the city aims to keep counted water-loss under 8% and projected a cash position of just under $16 million at year-end — about four and a half months of operating costs — to maintain liquidity.
Key capital needs and costs: Hopper highlighted high-priority projects including an estimated $3.3 million Section 22 water-main replacement (area with frequent breaks), a Pickford upsizing project, sanitary/storm lining and an ongoing lead-service-line investigation and replacement effort budgeted at approximately $1.7 million. He said one mile of residential water-main replacement is currently about $2 million; one mile on a major road is about $3 million.
Consumer guidance and participation: Staff urged homeowners to use the city’s online “CheckYourPipes.Livonia” tool and to schedule inspections to help the city identify lead service lines; Hopper said about 26 properties were known to have lead lines and those properties are prioritized for semi-annual testing. Councilmembers praised the plan’s mapping and urged public participation; the council put the rate ordinance on the June 1 regular agenda for final action.
Next steps: Council moved the item to the June 1 regular meeting for a final vote; staff will include supporting documentation and the financial analyses in the packet.
