Public hearing to gather residents' input on water and sewer rates scheduled for June 28

CHEBOYGAN — The Cheboygan City Council will host a public hearing at 7 p.m. Tuesday, June 28, to gather city residents' input on water and sewer utility related rates and fees.

The city council's finance subcommittee and Cheboygan City Manager Dan Sabolsky determined the city has to move forward with changes to the rates.

"So, we don't have to do a public hearing on that because of the fact that our legal counsel switched over from where it used to be in an ordinance to where the fees and rates are set by resolution," said Sabolsky. "But I thought it would be a good thing to do and I think the finance committee thought it was a good thing, and staff."

At the public hearing, city officials will discuss the proposed fees and rates.

The city has a rate study from a consulting firm that made recommendations for the City of Cheboygan and Inverness Township.

More: Outside firm doing rate study for sewer agreement between city and township

Sabolsky said the consulting firm and staff are working on a presentation so the data is clear, concise and easy for residents to read.

"So that when we put those out there, everybody can understand where their water and sewer fees will go, and what the changes are," said Sabolsky.

The city has a $20 million wastewater treatment plant upgrade project that has a 25% principle forgiveness. This means the final cost of these upgrades is around $15 million. The city is also working on an $8.9 million water upgrade project.

"We did do very well on a low interest loan for that at 1.25%, which is looking even better every day as the rates go up," said Sabolsky. "But we do have to pay for that. Both those activities that we're undertaking because we were ordered by EGLE to do so, so we had no choice."

If the city were to not complete the upgrades and projects it has planned, there would be heavy fines and penalties enforced from the Michigan Department of Environment, Great Lakes and Energy, formerly the Michigan Department of Environmental Quality.

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"Now we've got to pay for those improvements, as well as other improvements, and kind of looking to the future of starting to make some of the infrastructure repairs that we need," said Sabolsky. "Remember that number that was out there of $77 million of our infrastructure is in very, very poor condition. So, this is the start of addressing that."

City council voted unanimously to schedule the public hearing for council's June 28 meeting.

Contact Reporter Kortny Hahn at khahn1@gannett.com. Follow her on Twitter at @khahnCDT.

This article originally appeared on Cheboygan Daily Tribune: Water and sewer rates and fees to be discussed at public hearing June 28