New Budget Brings Higher Sewer, Water Rates to Hartland Township

Hartland Township residents will continue to see higher utility bills this year, under the 2011-12 budget the Township Board approved Tuesday, and officials warn even another sewer rate increase on top of those already planned could come later this year.

Officials said such a move — which would be in addition to 4-5 percent increases per quarter that resume on April 1 as the new budget takes effect — likely would be a "last resort." The option is one of several ways to tackle a projected $2 million needed as cash flow over the next five years to offset expected sewer assessment delinquencies as many commercial undeveloped properties continue to go belly up.

"I don't know if we want to hit (rate payers) that way if we're going to reassess them anyway," said Trustee Joe Colaianne, noting how the township will reassess the delinquencies to users later this year to comply with state law.

A complicated set of solutions

Financially, officials say the township — unlike others in the area such as Howell Township which is asking voters for new taxes — has the cash on hand at the moment to address any current sewer delinquencies with more than $4 million available from general fund surpluses and capital improvement money. The township's general fund current annual budget is about $1.7 million will be about the same under the budget approved.

"Fiscally, we're in good shape to address this issue," Supervisor Bill Fountain said.

But officials have other priorities and plans for much of that $4 million and they question whether using general fund dollars is the fairest move because not every resident uses the system even as the system is considered a community asset. That's why a solution, they say, is likely to include a combination of ideas.

Other options include loaning money from other more restricted township funds, buying back sewer connections and purchasing tax foreclosed properties. Unlike general fund dollars, these ideas would likely would lead to higher sewer rates as well over longer period of time, although such increases could be offset if the more development brings new users to the system and a stronger economy reduces delinquencies.

Reasons for approved water, sewer increases

Meantime outside the delinquency issue, the bills will be going up for both water and sewer with Tuesday's vote. The 4 percent water increase matches rising costs, officials say, while the sewer price 4-5 percent hikes per quarter are part of a longterm plan to catch the township up with what it pays the Livingston County Drain Commission to run the system.

In sewer, the flat fee for a typical single-family home to have the system ready will increase from $13.26 to $13.39 on April 1 and $13.52 on July 1. The per 1,000 gallon usage rate rises from $5.16 to $5.36 on April 1 and $5.58 on July 1.

These changes follow a recent trend of slowly catching up the rates with the system's costs and follow more than 20 years of no increases and transferring the system to the drain commission. Currently, the commission charges the township $6.93 per 1,000 gallons. Final decisions on increases planned for the second two quarters will be decided after officials decide how to handle the delinquency issue.

For water, the flat fee to have water available for a typical single-family home will increase from $10.61 to $11.03 while the rate per 1,000 gallons will rise from $2.97 to $3.09. Officials say this increase helps the township match rising costs, although more increases could be necessary in the future as the township considers its water master plan to maintain the system.