Rochester Hills council accepts first reading of water and sewer rate changes, raises capital connection fees

City staff presented a first-reading ordinance to amend Chapter 54 (fees) implementing water and sewer rate changes effective July 1, 2026. Staff described a water unit increase of 5.5% (about $0.43 per unit), a sewer unit increase of 2.4% (about $0.17 per unit), and modifications to ready-to-serve charges. The city’s water capital charge would rise to $1,500 — an increase of $650 or about 76% — and the sewer capital charge to $2,000 — up $850 or about 74%.

"For a typical water and sewer customer who uses the residential average of 12 units per billing cycle, their water and sewer bill is anticipated to change from currently $185 per two-month cycle to $192 per two-month billing," staff said, noting the increase amounts to roughly $7 per two-month billing cycle (about $3.50 per month) for the average user.

Staff said the capital charges are one-time fees for new or redevelopment connections and are intended to align the city’s charges with the midpoint of a 10-community survey; the capital charge increase is meant to better fund long-term system replacement so the city does not rely on bonds for every major project. Council members asked whether much of the increase reflects pass-through costs from providers such as the Great Lakes Water Authority; staff confirmed a substantial portion of the change stems from provider pass-throughs and recommended rate-setting best practices implemented by Plant Moran during the study.

The ordinance was accepted for first reading and will return for a second reading at the June 22 council meeting before final adoption.