Kingsford manager flags insurance and infrastructure costs; proposes modest July rate adjustments for water and sewer

City Manager Michael Stelmaszek told the Kingsford City Council on June 1 that the city's insurance premium through MMRMA rose and that the increase requires a budget adjustment to the FY 2026-2027 draft. "Our premium costs went up causing a need to increase the amount budgeted for this expense from $100,000 to $115,000," Stelmaszek said. He also recommended a July 1, 2026 change to water and sewer charges: an increase in the usage rate of 1.35% and a flat rate increase of 2.7% for each fund.

Stelmaszek warned councilors that the Water fund faces an upcoming yearly debt payment of approximately $112,000 tied to Project #4 and described deferred-replacement needs: up to 600 remaining residential water access lines mandated for replacement, roughly 35% of water infrastructure more than 100 years old, and about 50% of sewer infrastructure similarly aged and vulnerable to failure. "Planned project replacement of infrastructure can be done very cost effectively," he said, urging study of combined sewer/water replacement in high-need blocks. The council held a brief discussion; no final appropriation or adoption of the revised budget occurred at the June 1 meeting.