Commission adopts new water, sewer and stormwater rates; staff cites rising GLWA costs

Birmingham commissioners approved new water, sewer, stormwater and related fees effective July 1, 2026, adopting recommendations from a recently completed rate study.

Finance and utilities staff presented a multi‑phase strategy: (1) end general‑fund contributions to utility capital projects; (2) stop drawing enterprise fund balances for operating and capital needs; and (3) rebuild targeted enterprise fund reserves (staff recommended roughly $10 million as a target for combined systems). Jamie Burton of HRC (the firm that completed the rate study) and Mary Chavez presented rate tables and implementation steps.

Saqua general manager Eric Griffin joined to explain upstream vendor pressures: about 92% of Birmingham’s wholesale water cost is tied to the Great Lakes Water Authority (GLWA). Griffin said GLWA is carrying an elevated capital investment plan and that past rate promises (a multi‑year 4% cap) have given way to higher increases because the authority faces significant deferred capital needs. He said GLWA’s recent increases drove a 6% wholesale increase this cycle and that the city must pass through most of those costs to customers.

Commissioners pressed staff on communication: Mayor Prom Long asked for clear FAQs and a customer communications plan that explains what the new “rate‑to‑fund” (RTF) or combined billing components are and why wholesale GLWA costs affect local bills. Staff said an FAQ will be distributed with the next utility bill and available online.

Action: The commission adopted the ordinance changes and approved the new fee schedule by roll call (unanimous). Staff will finalize the detailed bill format and public outreach plan prior to the July 1 effective date.