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Tag Archive | "City’s water and sewer rates"

City of Cedar Springs water and sewer rates explained


 

Part 2 of an article on the city water/sewer system

By Mike Womack, City Manager of Cedar Springs

The City’s water and sewer rates are set to reflect not only the costs to operate the ongoing water and sewer process but they also have to take in sufficient amounts to expand the system for economic development, replace old pipes before they break and also respond to emergency situations where the pipe has to be fixed immediately with few options regarding time and place.  

Unfortunately, over the last decade, the City’s water and sewer rates were not being appropriately adjusted each year to keep up with the costs of funding the system.  Between the years of 2008 and 2017, the City’s sewer fund lost $1,114,927 in value averaging a loss of $123,880 per year. These losses were a result of the City not slowly increasing water and sewer rates each year to keep up with inflation or to reflect changing levels of demand, as users increased or decreased demand each year.  In that period the sewer fund only posted one positive income and that was in 2016-2017, the year that the current rates were set. In 2016-2017, the sewer fund captured $159,947 or slightly more than this single sewer line emergency repair and replacement will cost. (The sewer line repair on West Muskegon between Fifth and Seventh Streets.) The water fund, thankfully, did not see the same type of losses that the sewer fund did. The water fund gained $321,161 in value from 2008-2017 or $35,684 per year. While at least positive numbers, the water fund is undersized and should have been increasing at a higher rate.  

Due to the years of neglect in accurately setting water and sewer rates, the City decided to raise those rates as part of the 2016-2017 budget. This was necessary to stabilize the water and sewer fund balances and to ensure that the City continues to be able to provide safe drinking water without PFAS or the lead that other cities have suffered. To that end, I truly am sorry for the price of water and sewer in the City of Cedar Springs. If the City could offer free water and sewer service for all it would. City staff understands the anger and frustration that citizens have expressed about the water and sewer rates. We appreciate every citizen who has approached city staff with calm questions, and we hope that we have been able to answer those questions and concerns to the best of our abilities and to your satisfaction.  Even though Cedar Springs’ water is more expensive than it used to be it is still a great bargain, at 6000 gallons used, each gallon of water costs the consumer just 1.6 cents to produce and clean after use.

Moving forward the City is working to increase the number of system users by bringing in new neighborhoods and businesses.  Those new homes and businesses then help reduce everybody’s costs by spreading the overall costs among more users. We also continue to modernize our systems and equipment, which reduces overall costs.  Our recent switch to estimated bills for two months followed by an actual read in the third month has led to savings of 15 man-hours per month with the goal of permanently reducing those meter reading hours to approximately 2 hours per month with an actual read every month. Those 15 extra hours are now used to replace old water meters with the new water meters enabling those quicker reads.

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