Ludington council to consider water and sewer rate hikes

May 22, 2023

Ludington council to consider water and sewer rate hikes

LUDINGTON — Ludington City Council will consider increasing water and sewer rates when it meets today for its regular meeting. If approved, the council will increase water rates 7.5 percent and sewer rates 4.9 percent for each of the years 2024, 2025 and 2026. In 2022, the Council increased rates for 2023 at the same percentages. 

On average, the annual rate increases will cause the average user to see an increase of water prices by $3.60 per billing quarter and an increase in sewer prices by $4 per billing quarter each year, according to a memo from City Manager Mitch Foster to the Council. 

“As the revenue increases, it will allow the City to make investments in our water infrastructure which will be felt by all ratepayers,” Foster wrote. 

The increase in water rates is expected to raise an additional $215,200 in 2024, $231,300 in 2025, and $248,600 in 2026. The increase in sewer rates is expected to raise an additional $114,000 in 2024, $119,500 in 2025 and $125,300 in 2026. 

Foster stated alternative options include leaving rates alone with no annual increase, which does not allow for funding to be raised for future investment; increase by the rate of inflation, which is 7.9 percent in 2023. However, the inflation rate changes annually and does not allow for long term budget planning, Foster said. 

“Both of these options are available, but have more issues associated with them as compared to a more moderate approach to this which I am recommending,” Foster wrote. 

City Council meets at 6 p.m. at the City Municipal Building, 400 N. Harrison St.

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