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Council adopts tight FY 2026–27 budget and raises water and sewer rates
Summary
After a public hearing, the St. Clair Shores City Council adopted the FY 2026–27 budget and approved a package of utility changes: a 5% sanitary sewer increase, a 6.7% water rate increase, and a modest storm charge adjustment. Council voted unanimously on millage, rate ordinances and the budget.
The St. Clair Shores City Council adopted the city’s FY 2026–27 budget and set related tax and utility rates after a public hearing and staff presentations. John Walters, the finance director/treasurer, presented the levy and rate package and described the rationale for the utility adjustments.
Key numbers presented in council materials included an operating charter limit of 8.0 mills with a published operating figure of 5.3208, and an overall proposed levy change (the packet cited last year’s levy and the proposed 23.6683 figure). Walters said the recommendation for sanitary sewer is a 5% increase (below the 6.2% increase passed through by SMSD) and a 6.7% increase for water to cover planned capital projects; GLWA wholesale water charges were cited as a 4.7% upstream driver. Staff noted the water increase is driven in part by large planned capital outlays and the need to maintain working capital for the enterprise fund.
Council members pressed staff on how long a reduced‑rate approach could be sustained and whether proposed increases cover planned capital; Walters said the recommended rates fund fiscal 2027 operating requirements and set aside a modest amount for future sanitary capital. Council also discussed fund balance versus working capital for enterprise funds, the upcoming need to replace MTU meter transmitters (roughly a 12‑year replacement cycle for electronic MTU units), and the city’s hardship assistance program for residents who cannot pay utility bills.
Votes and outcomes: Council approved the millage resolution, the ordinance amendments for sanitary and water rates, the storm‑water user charge, and the FY 2026–27 budget by unanimous recorded votes (7–0). Finance staff said the adopted general fund budget is balanced but very tight (a small surplus of about $4,000 reported in staff remarks).
Why this matters: The rate increases reflect both pass‑through costs from regional providers and locally planned capital spending (water mains, meter replacement and sanitary rehabilitation). Council members emphasized gradual rate increases to smooth costs rather than a single large hike. Staff committed to more proactive resident communications about hardship assistance and payment options.
