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.

History of city of Ann Arbor water rates. The city converted to a tiered system 10 years ago in 2004, based on usage. The 2015 amount is proposed.

Details on the council’s deliberations are provided in The Chronicle’s live updates filed during the meeting.

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

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.

History of city of Ann Arbor water rates. The city converted to a tiered system 10 years ago in 2004, based on usage. The 2015 amount is proposed.

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

In terms of revenue generated to the city, the rate increases are expected to generate 3.55% more for drinking water ($739,244), 4.25% more for the sanitary sewer ($955,531), and 4% more for stormwater ($233,811). [.pdf of complete utility rate changes as proposed]

According to the city, the rate increases are needed to maintain debt service coverage and to maintain funding for required capital improvements. The city estimates that the impact on an average customer will be a $20.66 per year increase in total utility charges.

The city’s drinking water charges are based on a “unit” of 100 cubic feet – 748 gallons. Charges for residential customers are divided into tiers, based on usage. For example, the first seven units of water for residential customers have been charged at a rate of $1.31 per unit and will now be increased to $1.35 per unit. Since 2004 the city has used four tiers of rates, based on usage. For this year, however, the amount charged for the top tier – for usage over 45 units – is proposed to be identical with the next lower tier. Currently the top tier is charged at $6.78, but is proposed to drop to the third tier rate of $4.88.

Ann Arbor water utility rates.

Sewer rates are charged as a function of water usage. The commodity rate is proposed to increase from $3.48 to $3.65.

The city’s stormwater rates are based on the amount of impervious area on a parcel and are billed quarterly. For example, the lowest tier – for impervious area less than 2,187 square feet – has been $13.68 per quarter. Under the new rate structure, that increases to $14.20.

Water usage for Ann Arbor city residents is available on the city’s website. [You'll need your account number to access information.]

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]

A year ago, tuition increased 6.7% for in-state undergraduates at the Ann Arbor campus, and 4.9% for out-of-state undergraduates. At the June 2011 regents meeting, Ilitch and Deitch had cast dissenting votes for those increases, too.

On Thursday, Ilitch spoke against the FY 2013 tuition increases, describing the burden on students as “brutal.” Higher education is increasingly becoming out of range for Michigan residents, and that’s unacceptable, she said. Regent Julia Darlow responded by saying that all the regents are concerned about affordability and accessibility of higher education for low- and middle-income students. But she noted that the net price for a UM education – including all costs, not just tuition – is actually lower now for students from middle-income families than it was in 2004.

The general fund budget for the Ann Arbor campus also includes $144.8 million in student financial aid, an increase of $10.5 million compared to last year. In a media briefing prior to the June 21 meeting, provost Phil Hanlon said this marks the fourth year in a row that a typical student with financial need won’t see an increase in the cost of attending UM, due to increases in financial aid. This year, the financial aid increase reflects additional grants, not loans.

The FY 2013 budget reflects a $4.3 million increase in UM’s state appropriation to $273.1 million – an increase of 1.6% compared to FY 2012. Last year, state funding to UM had been cut 15%. Hanlon noted that while the university is appreciative of this year’s increase, in the past 11 years there has been a drop of $178 million in state aid to UM, adjusted for inflation. He encouraged state legislators to continue their investment in higher education.

Hanlon also highlighted the university’s cost-cutting efforts, pointing to reductions of $235 million in general fund expenses since fiscal 2004. Looking ahead, UM has a five-year goal of cutting another $120 million, he said, which includes more than $30 million of cuts in fiscal 2013. The savings will come in part from consolidating IT operations, cutting about 70 staff positions through a combination of attrition and layoffs, and using the university’s buying clout to get more favorable pricing from vendors.

On the expense side, the budget includes what Hanlon characterized as modest salary increases of 2% for staff and 3% for faculty. He noted that these are not across-the-board increases, but will be made based on merit.

Tuition and fees make up a large portion of the general fund operating budget. For the Ann Arbor campus, a budget of $1.649 billion in FY 2013, which begins July 1, marks a 3.9% increase from FY 2012. Of that $1.649 billion, tuition and fees account for $1.156 billion in revenues. The budget reflects a 6.1% increase in tuition revenue – an increase higher than the tuition hike itself because of changes in enrollment.

Also during the June 21 meeting, regents approved student fees that are unchanged from fiscal 2012: $7.19 per student per term to fund the Michigan Student Assembly; $1.50 per student per term to fund school/college governments; and $8.50 per student per term for Student Legal Services. A $174.40 fee per student per term was approved for the University Health Service, up 1.4% from FY 2012.

Multiple votes were taken on budget-related items, including the overall budget, tuition, fees, housing rates, as well as budgets and tuition rates for the Dearborn and Flint campuses. UM president Mary Sue Coleman chaired the meeting, and there was considerable confusion at the board table about the order of the votes. At points it also was unclear – at least to the media and general public observing the meeting – who cast the dissenting votes. The outcome of the votes was later clarified by Nancy Asin, assistant secretary of the university.

This brief was filed from the Michigan Union Ballroom on the Ann Arbor campus, where regents held their June meeting.

Room and board costs for a double residence hall room would increase from $9,468 to $9,752. A staff memo accompanying the proposal indicates that the 3% increase for residence halls is divided into two components: 1% for increased operating costs; and 2% for residence hall renovations.

In April, Eastern Michigan University’s board of regents approved an aggregate 4.95% room and board increase.

Housing rates are typically set by regents at their May meeting. This year, it was handled as part of the overall budget approvals for the coming fiscal year.

This brief was filed from the Michigan Union Ballroom on the Ann Arbor campus, where regents held their June meeting.

Because the water and sewer rates are part of a city ordinance, the council will need to vote a second and final time on the rates, after a public hearing.

By way of illustration of the rates, the drinking water rate for the vast majority of residential customers is tiered, based on usage. For the first 7 “units” of water, the charge is proposed to increase from $1.27 to $1.31. For the next 21 units, the charge is proposed to increase from $2.64 to $2.74 per unit. And for the 17 units after that, the increase is proposed to be from $4.50 to $4.69. For additional amounts more than 45 units, the charge is proposed to increase from $6.50 to $6.78 per unit.

One hundred cubic feet is 748 gallons. So a rate of $1.31 per unit translates to significantly less than a penny a gallon – $0.00175.

Ann Arbor’s tiered rate system was implemented in 2004. Before that, the rate for all usage levels was the same. In 2003, that was $1.97 per unit. In 2004, the lowest tier was dropped to $0.97. This year’s rate for the lowest tier is still less than what the general rate was in 2003. [Link to Google Chart illustrating the history of Ann Arbor water rates] [.jpg of chart showing history of Ann Arbor water rates]

[.pdf of water, sewer rates]

This brief was filed from the city council’s chambers on the second floor of city hall, located at 301 E. Huron. A more detailed report will follow: [link]