For interest - Warren, MI Water rate hike

Residents may pay 7 percent more to absorb cost of replacing meters

Published: December 31, 2005
By Norb Franz Macomb Daily Staff Writer

Warren residents in January may be hit with a nearly 7 percent jump in combined water and sewer rates.
Mayor Mark Steenbergh has recommended a 6.9 percent increase, in part to pay for replacement of water meters across the city.
"Most of our meters are at the end of their useful lives and need to be replaced," Steenbergh told council in a report outlining a proposed $34.1 million budget for the city's water and sewer system in 2006. "We have been talking for years about moving to an automated system where we can retrieve more timely information from system users for billing purposes and to be aware of significant spikes in usage that could indicate a problem on the user end.
"It is an expensive undertaking but one that we must seriously consider," he said.
The Warren City Council has not yet voted on the spending plan.
If officials approve an increase, it is expected to be the first of two water rate jumps in Warren in the new year. Residents might get socked in July, when the city of Detroit -- which supplies water to most suburban communities -- is expected to increase the rate it charges Warren for water by 13 percent.
"It's totally unjustified," council President James Fouts said.
Although the water/sewer budget is separate from the city's general fund, Fouts suggested Steenbergh give up his police chauffeur in an effort to cut costs.
"We have to look closely at every penny," Fouts said. "I don't think (a mayoral chauffeur) can ever be justified, least of all now."
In the past, the city's legislative officials have been leery of voter backlash over water bills, and slashed the mayor's recommendation by approving smaller increases or freezing rates.
A year ago, Steenbergh proposed a 7.9 percent increase. Council voted to raise the water/sewer charges by 4.9 percent. The smaller increase, officials predicted, would force Warren to put some water main and sewer projects on hold. Macomb County's most populated city records approximately 400 water main breaks a year, and some sewer lines are almost 70 years old.
In 2003, council members opted for a 2.6 percent hike after the mayor suggested a 3.9 percent jump.
Detroit's cost increase in July to supply water to Warren will be heavily scrutinized. Warren filed a lawsuit against Detroit a few years ago, alleging the bill from the utility incorrectly included wastewater treatment charges that should not be passed along to Warren because, unlike most suburban communities, Warren operates its own wastewater treatment plant.
Last July, Detroit reduced the cost of water to Warren by 5.35 percent. Warren officials passed that savings to households and businesses.
But with higher water bills looming, Warren resident Henry Krzystowczyk said he and some of his neighbors are considering whether to dig a well and use that water for their lawns.
Tom Pawelkowski, a former council candidate who has studied water fees in his hometown, hopes the council keeps any increase in check.
"As I see it, this budget has a lot of fat in it and it needs to be scrubbed down," he said.
But city administrators insist a 6.9 percent increase is needed, even as officials expect the recent years' decline in water use across the city to continue.
They said homeowners reduce water consumption -- such as watering lawns less frequently -- as municipalities raise water/sewer rates, resulting in less water "sales" and thus less revenue. Officials point out that's a Catch-22, and hurts communities because employee wage and benefits costs continue to go up, and the cost to replace or maintain water mains and sewers also rises.
Administrators insist notions that Warren or other communities profit by marking up Detroit's charges are erroneous because the rates set by the Detroit water board is only for delivery of water to city boundaries. Any mark-up is needed to maintain, repair or replace water mains, they said.
In addition to the $10 million automated meter replacement program recommended by Steenbergh, the mayor has proposed 16 construction projects and a $300,000 inspection of all water lines and sewers in the city.