The Great Lakes Water Authority (GLWA) is proposing to increase water and sewer rates for the upcoming fiscal year 2026.
This proposal comes as the 10-year commitment to limit rate hikes to no more than four percent expires on July 1, the beginning of the new fiscal year.
The proposed increases are significant, with an average increase in water system charges of 7.73% and an increase in sewer system charges of 5.39%.
According to the authority, these proposed hikes are motivated by the need for corrosion control and infrastructure improvements. GLWA reports that non-discretionary chemicals, utilities, and services have also increased by nearly 55% since 2020.
To address these rising costs, GLWA plans to raise its wholesale water rates, which will likely be passed on to consumers.
| Year | Water | Sewer |
|---|---|---|
| 2018 | 1.8% | -0.7% |
| 2019 | 1.8% | 0.1% |
| 2020 | 0.6% | 0.8% |
| 2021 | 3.2% | 2.0% |
| 2022 | 1.5% | -0.6% |
| 2023 | 3.7% | 2.4% |
| 2024 | 2.75% | 2.75% |
| 2025 | 3.25% | 3.0% |
| 2026 Final Proposed | 7.73% | 5.39% |
| 9-Year Average | 2.9% | 1.7% |
Data: Great Lakes Water Authority
GLWA follows a structured process to create its water budget, which is traditionally capped at a 4% increase annually. This cap ensures that the budget does not exceed a 4% yearly rise. The budget is then utilized to set specific charges for each community, taking into account several unique factors.
These factors include:
- Usage Patterns: The amount of water a city consumes, especially on the hottest days and the highest usage day of the year, plays a significant role in determining charges. Higher usage can lead to increased costs.
- Elevation from the Water Plant: The elevation of a community relative to the water plant affects the cost, as it requires more energy and resources to pump water uphill.
- Distance from the Water Plant: The distance water must travel from the plant to the community also impacts charges. Longer distances can increase transportation costs, thereby influencing the overall charges.
These considerations ensure that each community’s charges are tailored to its specific circumstances in water distribution and billing.
Abbie Clark expressed concerns about the rising costs but acknowledged the importance of healthy water and infrastructure.
“Everything is getting a little expensive right now, so that’s a concern. I think it all just depends,” she said. “I’m all support for healthy water and my healthy family. So, I think a fair increase makes sense.”
GLWA’s proposed budget supports new initiatives, including a corrosion control strategy and a multi-year flood mitigation study in partnership with the U.S. Army Corps of Engineers. These initiatives aim to address the region’s infrastructure challenges, including repeated widespread flooding and aging systems.
However, not everyone agrees with the proposed rate hikes.
Demeeko Williams from Hydrate Detroit argues that the increases would be burdensome for customers already facing high living costs.
“I don’t think we should raise the rates at this time. Put a hold. They can hold for one year,” he said.
The Southeastern Oakland County Water Authority also expressed concern.
“Southeastern Oakland County Water Authority (SOCWA) has 13 communities and services over 250,000 residents in Oakland County.
As SOCWA’s General Manager, I have a responsibility to ensure that changes to the budget, including charge increases, are made in the best interests of the Authority’s member communities and the residents served.
While I understand that aging infrastructure is a significant challenge – not only in Michigan but a concern nationwide – the scope of this increase seems to address more than capital improvement projects and responses to inflationary pressures.
We all know that the water system is complex with a lot of variables to consider. But as a customer, we have our own aging infrastructure and regulatory requirements that we have to manage in a difficult economic environment.”
Eric L Griffin, general manager of SOCWA/SOCRRA
GLWA’s member partners deserve a detailed explanation of the $28 million water budget increase. GLWA has made it clear that this is the first of multiple years of increases of 6 to 8%. I would like to see more transparency on the GLWA water system budget and more information about why this budget increase is necessary this year.
The rate hike proposals will be discussed at a public hearing during the GLWA’s board of directors meeting. The meeting will be held at 2 p.m. on Wednesday, and a link will be available for people to join online.
GLWA and the Detroit Water and Sewerage Department (DWSD) will share the costs of repairing the recent water main break in Southwest Detroit. The public hearing was scheduled weeks before the February break.
