Great Lakes Water Authority approves reduced water, sewer rate increases following historic proposal

(FOX 2) - The Great Lakes Water Authority approved new water and sewer rates for metro Detroit following a lengthy public comment period that saw an outpouring of criticism directed at the proposed hikes.

Following discussion, board members unanimously approved a reduced hike on water system rates.

Big picture view:

The Great Lakes Water Authority approved increases in water and sewer system rates Wednesday during the board's monthly meeting.

Members unanimously approved a 5.9% increase in water system rates and a 4.5% increase in sewer rates.

Prior to the vote, GLWA's Chief Financial Officer Nicolette Bateson proposed the "fairly significant decrease" after several hours of public comments criticizing the potential rate hike as southwest Detroit continues to deal with the aftermath of flooding from a transmission line breaking.

During her presentation, Bateson presented a reduction from the initial proposal of a 6.5% water rate increase and a 4.5% sewer rate increase. The first proposed hike was nearly a percentage higher.

The reduced rate hike amounts to $2.2 million communities won't have to spend on water, Bateson said.

The backstory:

During the water authority's January board meeting, members discussed the upcoming budget that included proposing the largest water and sewer rate hikes in the body's history.

The proposed increases amount to an average of 7.73% for water systems and 5.39% for sewer systems.

According to the budget proposal, the water and sewer rate hikes are significantly higher than previous years' adjustments, which fell within the authority's goal of keeping increases under 4%.

The increases are tied to current and new infrastructure projects, including corrosion control in pipelines owned by local cities and a massive study on flood mitigation in Southeast Michigan. The cost of materials and chemicals for maintenance has also risen by almost 55% since 2020, according to GLWA.

Dig deeper:

Before February's proposed rate hikes, the largest increase was 3.7% in water rates and the 3% among sewer rates.

The vast majority of GLWA's budget - about 86% - goes to two sources: paying down debt that was used to finance improvements to infrastructure, and operation and maintenance. 

An additional 5.2% goes to the Detroit Water and Sewerage Department as part of the authority's lease agreement with the city, while another 7% is set aside for future projects.

Three other sources of funding include paying for Detroit's pension plan, its trust, and a water residential assistance program for water conservation and minor plumbing repairs.

The past eight years of water and sewer rate increases approved by the Great Lakes Water Authority.