COLDWATER, MI — Coldwater Board of Public Utilities customers may see a 3.9% increase in water rates and a 3% increase in sewer rates starting July 1, following the utility board’s approval of a rate study tied to over $50 million in infrastructure upgrades over the next five years.
For the average in-city household, this means about $1.20 more per month for water and $0.75 more for sewer. Similar percentage adjustments are projected annually through 2031.
The board forwarded the rate resolution to City Council for final adoption at its May 6 meeting.
CBPU Director Paul Jakubczak emphasized that the board approves rates only one year at a time and can adjust them up or down.
“Each year, we will review our ratios and cash balances to determine if we need to adjust the future plan,” Jakubczak said.
Larger commercial and industrial users will see the biggest dollar increases due to higher usage, but all customers will have the same percentage adjustments.
A consultant’s cost-of-service study found that without steady, inflation-level increases, water and wastewater funds would incur operating deficits and cash reserves would fall below recommended targets.
The proposed rate path maintains debt coverage and reserves above required minimums, supporting the city’s borrowing costs.
Utility officials say the increases are driven primarily by capital needs, including replacing lead and galvanized service lines, repairing the Garfield water tower, and other major projects.
The rate plan supports $14.4 million in water projects and $35.9 million in wastewater improvements.
On the sewer side, the utility is midway through a $2.6 million Phase 1 plant upgrade and planning a $30 million expansion to increase treatment capacity from 3.5 to 5 million gallons per day.
“This ensures we maintain our required ratios with the state,” Jakubczak said.
The plant is operating at over 80% capacity and will face stricter requirements if it exceeds 90%.
Additional capacity will support future growth, Jakubczak said.
Contact Don Reid, dReid@USATodayCo.Com
This article originally appeared on Coldwater Daily Reporter: CBPU proposes water, sewer rate increases
Reporting by Don Reid, Coldwater Daily Reporter / Coldwater Daily Reporter
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