By Megan Decker
Staff Writer
VASSAR — Over 100 residents gathered on Monday night to express their feelings toward the city’s proposed water and sewer rate increases.
The city council’s regular meeting was moved to the Vassar High School auditorium in order to accommodate the large crowd.
For approximately two hours, residents spoke in opposition to the city’s proposed increase which had been lowered from a previous proposal. Some residents were concerned about the retired population who were on a fixed income and could not afford the hike while others spoke regarding the businesses which rely heavily on water such as the car wash and laundromat.
On Jan. 6, the Vassar City Council held a Committee of the Whole meeting to review a utility rate study completed by the Michigan Rural Water Association. The request for a rate study was triggered by the recent closure of Metevation, explained City Manager Brad Barrett.
“Prior to the Committee of the Whole meeting, staff worked with Michigan Rural Water Association to review expenditures incurred with the operation of the water and sewer systems. The following expenditures were included in the rate study analysis: labor and benefits, operational, debts, equipment replacement and capital improvement.”
According to Barrett, efforts have been made by the city of Vassar in the last two years to decrease expenses. In 2012, the city refinanced the 1998 Series Water Supply and Sewage Disposal System Revenue Refunding Bond. This lowered the debt’s interest rate from 5.125-5.25 percent to 2.19 percent. One staff position was not filled following a retirement and labor agreements have been modified through negotiations to include another wage and benefit tier for newly hired employees.
“Unfortunately, each system has fixed operational expenses whether there are 100 users or 1,000 users.”
Staff worked last week to lower the rates which were previously proposed and mailed to residents by the city.
Following lengthy public comment and public hearing, city council voted to increase the residential water rates from $43.27 per quarter to $60.93 per quarter. The original proposed rate had been $65.85 per quarter.
The residential sewer rate was raised from $114.23 to $127.23 per quarter. The original proposed rate had been $144.90 per quarter. The sewer debt revenue fee will remain at $15 per quarter. In total, a residential customer’s quarterly bill will increase from $172.50 to $203.16.
City council members also voted to increase commercial (metered) customers’ water rate from $1.70 to $2.58 per 1,000 gallons. The rate for each gallon after 20,000 gallons used will increase from $1.19 to $1.29. The original proposed rate had been $3.25 per 1,000 gallons. Council members also voted on a proposed change of sewer rates.
City council members passed the new water rates by a vote of 4-1. Councilman Dan Atkins cast the sole “no” vote.
The fee schedule will be available for review at Vassar City Hall.
Among other action, city council members approved the appointment of Ian Rudnik to the Vassar Planning Commission. Rudnik’s term will expire June 30, 2017.
The next regular meeting of the Vassar City Council will be held at 7 p.m. on Monday, April 7 at Vassar City Hall.