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MRWA presents water-rate study; committee agrees increases likely but defers action
Summary
At an April 10, 2026 special session, the Michigan Rural Water Association presented water-rate options for Three Oaks, recommending meter-size-ready-to-serve structures and noting the Village needs larger adjustments after several years without consistent increases; the committee asked for more scenarios before acting.
On April 10, 2026, the Village of Three Oaks Public Service Committee held a special session with the Michigan Rural Water Association (MRWA) to review a water and sewer rate study presented by MRWA consultant Joe VanDommelen. VanDommelen outlined the Village's current water rate structure — a flat Ready-to-Serve (RTS) charge plus a uniform usage rate — and recommended considering a meter-size-based RTS to better align fixed system costs with customer demand and capacity.
VanDommelen told the committee that the Village has not implemented consistent rate increases in recent years and therefore faces a need for a larger adjustment to cover operating costs, outstanding debt obligations, equipment replacement, infrastructure upgrades, and longer-term capital planning. The committee discussed two principal approaches: implementing a full rate adjustment immediately or phasing increases over multiple years. Members also considered automatic annual adjustments tied to inflation or the Consumer Price Index (CPI) to provide predictable revenue growth.
Discussion included the distributional effects of restructuring rates: a meter-based RTS shifts more of the fixed cost burden to customers with larger meters (typically commercial users), while residential customers would be affected differently depending on the chosen structure. Committee members expressed concern about impacts on businesses and favored further analysis, including phased (step) increases to reduce short-term burdens. VanDommelen said he could prepare additional scenarios, including phased increases and alternative rate structures, for the committee's next review. No formal vote or rate change was taken at the meeting.
