City Coldwater Council approves water, wastewater rates hikes for July 1
COLDWATER — Coldwater residents will see an increase on water and wastewater bills this summer.
“I’m here to ask for an increase in the water and the wastewater rates, 3.9% on the water side and 2.9% on the wastewater side, effective July 1,” Coldwater Board of Public Utilities Manager Paul Jakubczak asked the city council before its unanimous approval Monday night.
The 2020 cost of service study projected annual rate increases at 1.9% for water and 2.9% for wastewater. The new study by Utility Financial Solutions, LLC showed inflation required an additional percentage to keep the utility in the same financial position.
The new projections call for the same annual 3.9% and 2.9% increase in water and sewer rates for the next three years. Jakubczak told the council, “This is just the financial projections and we’re going to bring these back every year based on what we’re seeing in the industry.”
Jakubczak compared the water rates with 13 other municipalities in the area. He said Coldwater was in the middle with its new residential rates based on current ones, with an average use of 5,000 gallons a month.
Municipality | Readiness to serve charge | Commodity charge | Total bill |
Union City | $23.50 | $41.50 | $65.00 |
Quincy | $34.97 | $20.50 | $55.47 |
Marshall | $20.95 | $23.00 | $43.95 |
Hillsdale | $13.50 | $24.75 | $38.25 |
Three Rivers | $19.56 | $17.40 | $36.96 |
Homer | $16.00 | $19.50 | $35.50 |
Adrian | $13.55 | $20.10 | $33.65 |
Charlotte | $16.40 | $16.55 | $32.95 |
Coldwater | $17.50 | $12.40 | $29.90 |
Sturgis | $15.75 | $13.60 | $29.35 |
Jonesville | $14.27 | $12.40 | $26.67 |
Bronson | $19.00 | $ 6.90 | $25.90 |
Springfield | $11.00 | $15.45 | $26.45 |
Battle Creek | $13.28 | $ 7.25 | $21.07 |
Jakubczak told the council, “A lot of this has to look at day-to-day cost, and those prices are going up. Our chemical cost, our pipe costs, all those costs in the water department are going astronomical.” Some grow by a factor of 10% to 20% from one month to the next depending on when the products are ordered he said.
The utility manager also said wastewater rates among the 13 other area municipalities were in the middle with new increases. The wastewater rates were based on the same water use per residential customer.
Municipality | Readiness to serve charge | Commodity charge | Totals |
Jonesville | $31.87 | $48.55 | $80.42 |
Union City | $29.98 | $42.50 | $72.48 |
Charlotte | $29.46 | $29.05 | $58.51 |
Hillsdale | $15.00 | $41.15 | $56.15 |
Three Rivers | $29.40 | $23.45 | $52.85 |
Bronson | $25.45 | $ 7.55 | $33.00 |
Marshall | $17.96 | $28.40 | $46.36 |
Coldwater | $29.50 | $16.65 | $46.15 |
Quincy | $24.76 | $20.50 | $42.56 |
Sturgis | $18.00 | $26.00 | $44.00 |
Homer | $21.67 | $17.00 | $38.67 |
Adrian | $13.24 | $24.20 | $37.44 |
Battle Creek | $16.98 | $18.40 | $35.38 |
Springfield | $11.94 | $22.35 | $34.29 |
Plant improvements are scheduled by 2026. The wastewater rate design will provide a $3.6 million capital fund needed.
Jakubczak told the council, “We’re continuing to try to take a small bites of that apple so that we can do some minor improvements to the plant.”
The manager said if the projected $20 to $25 million costs for all improvements come all at once, the work will add $18 a month to wastewater bills.
“We’re continuing to keep a large cash balance, to be able to fund those projects out of cash, and not having to bond out for those,” he explained.
CBPU will next tackle a cost-of-service study for electric and telecommunication for a possible Sept. 1 rate hike for those services.
---Contact Don Reid: dReid@Gannett.com. Follow him on Twitter: @DReidTDR
This article originally appeared on Coldwater Daily Reporter: City Coldwater Council approves water, wastewater rates hikes for July 1
