Saline City Council reviews consultant’s proposal for water and sewer rate hikes to fund infrastructure upgrades and address rising costs.

At the November 18, 2024, Saline City Council meeting, a consultant presented findings from a comprehensive water and sewer rate study.

The study recommends a 6.5% increase in water rates and a 7.5% increase in sewer rates to address rising operational costs and fund essential infrastructure improvements.

Rate Adjustments and Justification
Deputy City Manager Elle Cole explained the rationale for the proposed changes: “These adjustments will take effect on January 1 and will allow us to fund necessary projects such as the continued renovation of the wastewater treatment plant and critical upgrades to the water treatment plant.” Cole also highlighted an updated online bill calculator designed to help residents understand the financial impact of the new rates​.

Andy Campbell, CPA, a municipal financial advisor from Bendzinski & Co., outlined the pressures driving the increases. “We continue to see inflationary pressures on operating expenses,” he said, citing rising costs for supplies, chemicals, and healthcare. “This is the same thing that everyone’s experiencing in their own personal life.”

Campbell stressed the importance of proactive financial planning. “One of the biggest questions I’m sure you have right now is, why do we need to raise rates if we’re paying off debt? A lot of this is to make sure that we have money for the future. We’re still looking at water sourcing, capital improvements, and system sustainability,” he explained

Addressing Long-Term Challenges
According to the study, capital improvements and debt repayment are crucial to maintaining Saline’s water infrastructure. Campbell explained, “The hope is that with consistent capital improvements and reinvesting in the system, the operating expenses will go down or at least plateau. This approach will help reduce the need for future rate increases​.”

The study also recommended shifting some costs to new developments through “special districts,” which would ensure that new users pay their fair share of infrastructure expenses. “The city should never be put in a position financially where you have to pay money to get someone on the system,” Campbell said​.

Next Steps
The council plans to review and potentially approve the rate adjustments in December.