Jessica Mathews / news@whmi.com


Some utility rate increases were approved in the City of Howell.

At its last meeting, Council approved adjustments for water rates and sanitary sewer rates.

Utility Financial Services performed “Cost of Service” studies for Water and Wastewater. It’s the same company that has performed City utility rate studies in the past.

Enterprise funds are self-funded through operational revenues, primarily user fees. UFS rate adjustment recommendations are based on debt coverage ratio, minimum cash reserves, and optimal operating income.

A memo states “City Council determined that an increase in the readiness to serve charge for both the water and sanitary sewer is necessary for the optimum operation of the City’s water system and sanitary sewer system”.

Mayor Nikolas Hertrich told WHMI they hired a consultant and it was determined adjustments needed to be made with a 6.5% increase for water and 7.5% for the wastewater treatment facility. That’s to make sure the City is accounting for current needs but also planning for the future.

Hertrich said it was recommended they re-evaluate rates in 2 to 3 years, just to make sure they’re on the right path. He noted the City has done a lot of upgrades and they have good systems – giving kudos to former leadership, staff, council and residents for taking ownership of the assets. Hertrich said rates have had to be increased in the past, and they “didn’t kick the can down the road”. He added the Wastewater Treatment facility and drinking water facility are both very important to the City, and they are planning for the future.

More information is available in the meeting packet. That link is provided.