Increased Utility Rates Get Initial OK

Higher utility rates – for water, sewer and stormwater – have been given initial approval by the Ann Arbor city council. Action on the annual setting of the rates came at the council’s May 19, 2014 meeting. A final approval of the rates will come at the council’s June 2 meeting.

Water rates will increase across all tiers of consumption. For the first 7 “units” of water, the charge is will increase from $1.35 to $1.40. For the next 21 units, the charge is proposed to increase from $2.85 to $2.96 per unit. And for the 17 units after that, the increase is proposed to be from $4.88 to $5.08. A unit is 100 cubic feet, which is 748 gallons.

Sewer rates will increase from $3.65 to $3.85 per unit. And stormwater fees would increase for all tiers of impervious service. For the middle tier – for more than 2,187 square feet but less than or equal to 4,175 square feet – on a quarterly basis, the increase would be from $24.85 to $26.32.

According to the staff memo accompanying this agenda item, the recommended rate changes in water, sewer, and stormwater would increase revenues to the water, sewer, and stormwater funds by $765,119, $1,171,931 and $410,235 respectively. The reason given for the rate increases is to cover maintenance and debt payments, and to maintain funding for capital improvement requirements. The city calculates the impact to be an additional $6.25 per quarter or $24.98 per year for an average consumer, which is a net increase of 4.2%.

Water consumption for a typical single family is assumed at 19 units per quarter.

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron.