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Kingsford council adopts Sewer Fund Deficit Elimination Plan, plans rate increase July 1, 2026
Summary
The council adopted Resolution No. 2026/1/20.1 establishing a Deficit Elimination Plan for the Sewer Utility, including a possible interfund loan up to $180,000 and an increase in sewer rates effective July 1, 2026. The vote was 4–0 with one member absent.
The City of Kingsford adopted a Sewer Fund Deficit Elimination Plan (Resolution No. 2026/1/20.1) to address a deficit fund balance reported on June 30, 2025. Auditor Scott Sternhagen and staff explained the sewer utility used cash on hand to fund capital infrastructure while a large water infrastructure project and concurrent street work were underway. According to the plan, the general fund may "borrow" to the sewer fund up to $180,000 if needed, with the Sewer Utility repaying the general fund the following year.
Council also agreed the city will increase sewer rates effective July 1, 2026 to strengthen the fund balance for aging infrastructure and future expansion. The motion to adopt the resolution was made by Councilmember Dixon-Miller and seconded by Freeman. Roll call: yeas — Freeman, Olson, Groeneveld, Dixon-Miller; nays — none; absent — Flaminio. The resolution passed on a 4–0 vote.
