Tecumseh City Council approves increase for water, sewer rates

Tecumseh city council approved a 3 percent increase to the cost of water and sewer rates within the city on Monday, June 6. The rise in costs will begin July 1, and will go from $1.79 per 1,000 gallons to $1.84 per 1,000 gallons. Sewer costs will increase from $4.40 per 1,000 gallons to $4.53 per 1,000 gallons.

A typical family residence will use 18,000 gallons per quarter or 6,000 gallons per month, with typical consumers paying an extra $1.35 per quarter or 45 cents per month for water and $3 per quarter or $1 per month for sewer.

“You can’t go to the store and buy water for that price,” City Manager Dan Swallow said. “So it’s really a great value.”

The price changes are brought upon by operations and maintenance costs. These increases have arose due to employee wage increases at 1.5 percent annually, and health care and retirement costs increases 5 to 6 percent annually. There has also been a 1 to 2 percent increase in supplies and contracted services.

“Operations and maintenance are two primary considerations when considering costs,” Swallow said. “Long term, capital improvements, operations and maintenance costs increase at two percent annually.”

Future improvements to the city’s sewer and water treatment are also being considered by council. An outside firm recommended that $9.9 million be set aside in the budget for the sewer system, and $3.2 million be saved for the water system over the next two to three decades. Swallow advised city council to begin setting aside these funds for future long-term capital improvements for both the sewer and water systems.

Swallow added that regular annual increases in water and sewer rates of four to seven percent will be recommended by city staff over the next several years. All recommended improvements to be completed on the city’s timeframe would result in an increase of ten percent annually for city residents.

A statewide survey conducted by the Michigan Local Government Managers Association (MGMA) scored Tecumseh’s water and sewer rates in the bottom ten percent of communities statewide, and neighboring communities throughout Lenawee and Washtenaw Counties landed Tecumseh in the bottom 50 percent for water and sewer costs. Swallow noted that the proposed rate increases over the next several years would not make the city unfavorable for investors and others looking to move into the Tecumseh area.