COLDWATER, MI (WTVB) – The Coldwater B.P.U. Board of Directors approved their 2024-2025 budget which includes higher water and wastewater rates for the upcoming fiscal year on Wednesday night.
B.P.U. Director Paul Jakubczak pointed out the cost of electricity is expected to keep going up.
The Electric Budget has a projected net income of $2,700,000. Operating revenue is projected at $50 million. Expenses include a $38-point-6 million cost to purchase power.
The increases in water and wastewater rates are the result of a Cost of Service study completed by Utility Financial Solutions in April 2023.
They 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.
While some have taken to social media platforms to blast the CBPU, Jakubczak pointed out what the risks would be if rates were not increased.
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.
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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