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Committee delays recommendation on water rate study after business concerns
Summary
The Public Service Committee paused action on a water rate study after staff reported a $90,000 fund shortfall and business owners raised concerns; a special meeting was scheduled for May 11, 2026 to continue review.
The Public Service Committee on May 1 reviewed a Michigan Rural Water Association water rate study but did not forward a recommendation to Village Council, citing the need for more analysis and stakeholder information. The Village Manager told the Committee the water fund showed an approximate $90,000 deficit when depreciation is included and estimated annual depreciation at about $170,000–$175,000.
The study recommended changes to both ready-to-serve (meter-based) charges and usage rates. Staff cited a current usage rate of roughly $6.41 per 1,000 gallons with a proposed increase to about $6.97 per 1,000 gallons (an increase of about $0.56 per 1,000 gallons); the base, or ready-to-serve, charge was described at about $30 per meter with proposed adjustments by meter size. Multiple business owners in attendance questioned the methodology, the reliance on American Water Works Association standards, and whether residential customers could end up subsidizing commercial users; Committee members asked for case-study examples showing customer-level impacts before taking action.
The Committee asked staff to provide more detailed impact analyses, including sample bills for residential and commercial customers, and agreed to a Special Meeting on May 11, 2026 at 8:00 a.m., contingent on availability of an MRWA representative. No rate changes were approved at the May 1 meeting.
