Water and Sewer Rate Increases Proposed in City of HowellWater and Sewer Rate Increases Proposed in City of Howell

6/11/13 - A resolution to increase water and sanitary sewer rates was introduced at Monday night’s Howell City Council meeting. The City’s utility rate advisory has completed one year rate studies for each system and is recommending a 5.5% increase for water rates and a 6% increase for sewer rates. The rates are typically reviewed as part of the annual budget process. Council decided against any adjustments last July and the rates have remained the same since 2011. A memo from the City Finance Director noted there was concern that if the rates were not adjusted now, the utilities would be unable to meet identified targets to maintain a viable long term system. There are three identified targets the system must meet to be able to generate sufficient revenues to fund current operations and have enough in reserves to cover depreciation and also recover the interest cost of debt. The increase for the majority of water customers with 5/8 inch meters range from $3.25 per bi-monthly bill for 10,000 gallons, up to $11.25 for 50,000 gallons. The next largest group of users with one-inch meters would see an increase ranging from $2.75 in bi-monthly billing up to $10.75. As for the proposed sewer rates, increases range from 4.69% to 6.49% of the current bill. A comparison of the City’s proposed rates to the current rates of surrounding municipalities was conducted and they were within the range of other systems. Action on the resolution is expected at the next city council meeting. (JM)