Budget for Website - Flipbook - Page 61
Water & Sewer Rate Determination
The Great Lakes Water Authority (GLWA), formerly known as the Detroit Water and Sewer
Department (DWSD), conducts an annual review of its service rates, with adjustments taking
effect at the beginning of the City's fiscal year on July 1. For the 2026/27 fiscal year, GLWA
has approved a rate increase of 5.63%.
The annual cost to the City for water (paid to GLWA) and wastewater removal services (paid
to Wayne County Environmental) amounts to approximately $3 million, representing about
47% of the total Water and Sewer Fund budget of $6.5 million. The remaining portion of the
water and sewer budget is allocated to various expenses, including local staffing for
maintenance of services and mains within the City, debt service for the Rouge Valley State
Revolving Fund loan, funding of capital infrastructure projects, the purchase of an additional
13 cubic feet of sewer capacity from WTUA (Western Townships Utilities Authority), and the
maintenance of essential cash reserves due to the capital-intensive nature of these services.
In recent years, the City Commission has prioritized establishing utility rates that keep pace
with wholesale cost increases while also supporting the strategic accumulation of reserves.
These reserves are essential for offsetting unforeseen expenditures and for funding capital
improvements to the City’s infrastructure, particularly projects tied to the ongoing street
reconstruction program.
In fiscal year 2026/27, $817,300 is budgeted to provide critical capital funding for
improvements associated with the 2026 Infrastructure program approved by the Commission
on January 15, 2026. This includes the reconstruction of several water mains, sewer
improvements and repairs, as well as lead line replacements throughout the city.
The proposed rate increase for fiscal year 2026/27 is 5.45%, which is consistent with the
increase from GLWA and other rising operational costs. This adjustment is necessary to
maintain reliable service, fund critical infrastructure improvements, and ensure the long-term
financial stability of the Water and Sewer Fund.
The proposed rate adjustment also includes an update to the "ready-to-serve" fee, a fixed
charge based on meter size that supports the ongoing maintenance and availability of the
water and sewer system regardless of usage.
Until fiscal year 2025/26, the ready-to-serve rate structure remained unchanged since before
2000. Due to rising cost pressures, particularly those associated with maintaining and
upgrading the City’s water and sewer systems, annual adjustments to this fee are necessary.
The proposed changes to the ready-to-serve fee are outlined below:
City of Plymouth 2026/27 Budget
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