COLDWATER, MI (WTVB) – The Coldwater B.P.U. Board of Directors will be asked on Wednesday night to approve higher Water and Wastewater rates for the upcoming fiscal year.
The Cost of Service study completed by Utility Financial Solutions in April 2023
initially identified a five-year rate track but UFS has updated their projections based on the final results for Fiscal Year 2023 and the preliminary results for the first eight months of Fiscal Year 2024.
Their projections now reflect an overall rate increase of 4.9 percent for water and 3.9 percent for wastewater.
Last year at this time, the Board of Directors approved a recommendation that overall rates for water and wastewater be increased yearly through 2028. At that time, rates were to be increased yearly by three-point-nine percent for water and two-point-nine percent for wastewater.
Utility Financial Solutions Vice-President Dawn Lund said at the time the rate increases would allow the utility to move towards financial targets over the five-year period which includes a $1-point-5 million bond issue in 2027 to help fund the capital improvement program.
City of Coldwater Finance Director Tom Eldridge pointed out major upgrades are planned for the CBPU’s wastewater treatment plant.
B.P.U. Director Paul Jakubczak blamed inflation and higher material costs last year as the reasons why the adjusted rates were higher than what were recommended in a previous study.
The proposed rate track will be part of the annual budget. If approved, the rate increases are scheduled to take effect July 1, 2024 pending final approval by the City Council during their meeting on May 13.
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