Ludington council considering raising water rates.

December 9, 2020

Ludington council considering raising water rates.

LUDINGTON — City Council is considering raising water rates 7.5 percent over the next two years. During the regular meeting of the council on Monday, Dec. 7, the proposed water rate ordinance was read for the first time. Ordinances are read twice before they are passed into law. A public hearing will be scheduled during the second reading at the Dec. 21 meeting of the council. 

“Without a sustainable funding formula for water rates, the city will not be able to meet its goal of proactive infrastructure improvement and replacement,” a memo from City Manager Mitch Foster to the council stated. “Additionally, the use of debt may be greater without additional revenue.

“On average, these rates will cause the average user to see an increase of water prices by $5.80 per billing quarter. As this revenue increases, it will allow the city to make investments in our water infrastructure which will be felt by all ratepayers.” 

The new proposed city consumer rate, effective Jan 1, 2021, will be $2.31 per 100 cubic feet used each quarter. On Jan. 1, 2022, that rate will increase to $2.48 per 100 cubic feet used each quarter. 

The 2021 readiness-to-serve rate will increase by 7.5 percent over 2020 rates and again in 2022. 

The rate for customers outside the city that are not part of an intergovernmental agreement will be $4.36 per 100 cubic feet used in each quarter for 2021 and $4.69 per 100 cubic feet used in a quarter in 2022. 

The rate for the City of Scottville will be $2.03 per 100 cubic feet used in each quarter in 2021 and $2.18 in 2022. 

The city’s will also set a rate for Pere Marquette Township based on its agreement with the charter township. 

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