Great Lakes Water Authority OKs service charge increases for FY 2025 - Detroit News

Great Lakes Water Authority OKs service charge increases for FY 2025

Service charges going up for water, wastewater services in SE Mich.
Anne Snabes

Starting July 1, service charges for water and wastewater services are going up 3.25% and 3% respectively in southeast Michigan under a new budget approved by the region's water authority to make up for cost hikes absorbed in the past.

The service charge increases were approved Wednesday by the Great Lake Water Authority's board of directors along with its 2025 and 2026 biennial budget. The GLWA is the regional water authority for southeast Michigan, serving approximately 4 million customers in eight counties.

Service charges are how much a local government pays for wastewater services, water from the authority or both. Local government then add their own charges.

The service charge increases of 3.25% and 3% are for fiscal year 2025, which begins this July 1. GLWA said the increases are the result of an overall FY 2025 budget increase of 4%, which is offset by increased investment earnings. The service charge increases are below the most recent 2023 consumer price index for all urban consumers — a common measurement of inflation — of 4.1%.

“As in previous years, the main force guiding our budget and charge development has been our promise to do everything within our power to balance the regional system’s budgetary needs with overall affordability concerns,” GLWA Chief Executive Officer Suzanne Coffey said in the release. “No decision is made today without understanding how it impacts the future, the environment and those we serve."

GLWA notes that the service charges are only one element of what local homeowners and business owners see on their water bill. Each municipality has its own added costs associated with maintaining its local system, which can mean that GLWA's charges may be a larger or smaller percentage of the total cost of a municipality's water expenses. GLWA said that each local government ultimately sets the end cost that property owners pay.

GLWA’s eight-year annual average system-wide service charge adjustment is 2.3% for the water system and 1.2% for the wastewater system, according to the news release.

The water authority's total budget for FY 2025 is $906 million, which is approximately $35 million above FY 2024.

Nicolette Bateson, the authority's chief financial officer and treasurer, said in the news release that GLWA is continuing to absorb cost increases over many years that exceeded revenue increases. Since the start of the COVID-19 pandemic, the cost of chemicals that GLWA uses for water treatment and the cost of building materials such as iron and steel has risen.

“Despite these economic challenges, there is not one area of the utility that is not advancing resiliency and effectiveness initiatives," Bateson stated. "Our bottom line is a future focused on wholistic resiliency.”

asnabes@detroitnews.com