KALAMAZOO, MI (WKZO AM/FM) — The City of Kalamazoo has voted to approve an increase on municipal water and wastewater rates.
During a virtual meeting Monday night, Commissioners spoke on the matter, which had previously been discussed at the beginning of February.
“Approval and implementation of this increase will allow the utilities to continue to operate and maintain the system and make capital improvements as outlined in the 2021 budget,” city documents state. “Also, the new rates will work to improve reserve funds, debt coverage ratios and allow for the continued stabilization of the utility’s financial position.”
According to city documents, if the measure were approved, it would amend ordinances in the city code and make changes as follows:
- Water Rates – The proposed changes for water were an increase of 14 percent. Those living within city limits would be paying an estimated $3.65 more a month for water, while those outside of city limits would pay an estimated $2.05 more a month. However, this will vary depending on water use.
- Wastewater Rates – The proposed changes for wastewater rates are listed at an increased 10 percent. Those living within the city are expected to pay an estimated $1.24 a month for wastewater services, while those outside city limits would pay an estimated $2.27 a month. Just like with the water rates, the actual cost will depend on the use of an individual.
Before a vote was taken, James Baker of Kalamazoo Public Services was brought onto the call to explain the implications of the rate increase.
“The water and wastewater utilities are essentially self-funded,” Baker said. “In order for us to replace infrastructure and expand the system, improve water quality, and do all the work we have to do, all that work is funded through utility rates. Those rates are paid for by utility rate payers.”
In other words, Baker says the system is owned by its rate payers. He was asked to explain what can be done for those who may be struggling to pay utility bills.
“I want to highlight a program that came during 2020,” Baker said. “Last year, over 500 households were assisted with the State Utility Payment Assistance Fund, that was 377 families in the city and 126 families in our township coverage area. That’s about $114,000 of direct payment assistance that went to help customer utility bills.”
Going forward, Baker reminded residents that water shut-offs are suspended at this time.
“We will not be coming out to shut off a customer account due to payment,” Baker said. “We also are focusing efforts with a partnership with Consumers Energy, really helping folks out through sustainability.”
He said that many families who struggle to pay utility bills may also struggle with usage, though that may not be intentional.
“It’s old plumbing, it’s leaking fixtures, it’s things that need to be addressed,” Baker said. “With this program, we help those customers address those items.”
He said that within the next week, a media release will be issued with more information about this program.
“It’s going to go to the service address, not the billing address, it’s where the meter is located,” Baker said. “That program is going to tell customers how they can connect with us, how they can receive help reducing their bills by reducing usage. It’s also going to connect folks with the ability to do an in-home audit, to look through plumbing fixtures, appliances, everything of that nature that could be driving those bills up.”
Ultimately, Commissioners voted to approve both new rates. They are now expected to go into effect on March 1.
A recording of the meeting can be viewed on YouTube at this link.
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