Warren ― With Warren’s water and wastewater system nearing “an end of life,” Mayor Lori Stone has proposed spending over $35 million over the next year to replace water and sewer pipes as part of her budget for the coming fiscal year.
Stone, who outlined her budget priorities during a special meeting on Monday, said that underground water and sewer infrastructure is some of the “most important investments that you’ll never see.”
“But when they fail, you notice immediately,” she added.
The water and wastewater system updates were part of Stone’s proposed $445 million budget for the 2027 fiscal year, a 3.5% increase over the current fiscal year. The new budget year begins July 1.
During her address, Stone highlighted 10 areas where water and sewer projects were work would be done across the city. For example, Hoover Road from Toepfer Road to Nine Mile Road and Masonic Boulevard from Schoenherr Road to Hayes Road will receive water and sewer replacements.
She also said that officials come to residents “reluctantly” with a proposal to raise water rates by 5.8% and sewer rates by 3.58%.
“We know that we have aging infrastructure and that it’s our responsibility to keep it up,” she told The Detroit News, “so we’ve identified projects and funding those to make sure that those projects get taken care of, whether it’s lining water pipes or replacing them.”
The proposed budget also includes over $6 million for major road projects; nearly $12 million for local streets; $5.9 million for Warren Senior Housing facilities; and upgrades to the Warren Community Center.
The budget includes a $163.9 million general fund, 40.5% of which is for the Police department and 22.3% for the Fire Department.
City Council Secretary Mindy Moore questioned the need for Stone’s budget presentation at all on Monday, saying she heard “no vision” from Stone. She said City Council members know how money is collected and other similar information. During her presentation, Stone provided educational information about the budget.
“I didn’t hear a plan. I didn’t hear a vision. I heard nothing but a recitation of what’s in the hard document. I’m not really sure what the point of yesterday was. All she has to do by charter is hand over the document,” Moore said, referring to the budget document.
But City Council Vice President Melody Magee said that she thought the mayor explained the budget “very well,” so constituents can “get a clear understanding” of how it works and how the money is being spent.
“Because people really want to know and deserve to know where their taxes are going,” she said.
Magee said the city could improve its communication and marketing efforts. She said it’s important for the city to give residents all of the information they need.
“You hear a lot of, ‘I didn’t know about that. I didn’t know we were doing it. I didn’t even know what type of events we have going on in Warren,’ and we assume that they’re always looking at the city website, and they’re not,” she said.
Proposed water and sewer rate increase
Stone said Warren operates its own wastewater treatment plant, and Warren’s proposed sewer rate increase is lower than that of the Great Lakes Water Authority. The Great Lakes Water Authority’s board voted in February to hike wholesale water and sewer rates for the 2027 fiscal year. Water rates will rise an average of 5.8%, while sewer rates will increase 4.26%.
Last year, Warren passed a 5.78% increase to the city’s water and sewer rate, said City Controller Richard Fox. Two years ago, Stone proposed, and the council approved, a 7.5% rate hike.
Stone said at the time Warren would spend $19.8 million on rebuilding infrastructure in fiscal year 2025, arguing the administration of her predecessor, former Mayor Jim Fouts, failed in the previous few years to fund “the necessary upkeep and maintenance for water and sewers.”
Fox said that in addition to water and sewer pipe replacements, the city also plans to spend $3 million on capital improvements at its wastewater treatment plant this year.
The city is also just starting a separate project to replace its sludge incinerator.
Magee, the City Council vice president, said the council never wants to raise water and sewer rates, but she acknowledged the city’s infrastructure is “very old.”
Councilman Jonathan Lafferty said Stone’s rate increase was expected.
“Infrastructure costs continue to increase year-over-year,” he said. “So what she proposed was absolutely expected, although I’m not sure it’s a complete perspective of the total needs of the department.”
Other highlights of the budget
Stone also shared that Warren is partnering with the Detroit Arsenal on securing funding to mitigate flooding and “improve resilience.” She said U.S. Army Tank-Automotive & Armaments Command has experienced flooding, and the city plans to purchase land in the area that will help prevent flooding.
“If you invest in permeable ground, in green surfaces, it allows it (rainwater) to be absorbed naturally back into the ground and create those … features that prevent it from accumulating,” she told The News.
She recommended $1 million in matching funds for the program.
Stone also shared several planned updates to the Warren Community Center, such as upgrading the waterfront kids play structure, renovating the women’s locker room and replacing some gym equipment.
The Parks and Recreation department is also planning to add a shade structure at Eckstein Skatepark.
The Warren City Council will have budget workshops this month, and is slated to adopt the budget on May 12.
asnabes@detroitnews.com
This article originally appeared on The Detroit News: $35M to go toward water, sewer updates in proposed Warren budget
Reporting by Anne Snabes, The Detroit News / The Detroit News
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