A typical Saginaw household will notice a $5.01 increase to their monthly water and sewer bill beginning July 2023, an additional $5.26 beginning in July 2024, and an extra $5.61 starting in July 2025. The gradual increase in rates is needed to help finance capital improvement projects and system enhancements for the aging infrastructure in both the water and sewer departments.
The new three-year rate plan will impact both water and sewer rates beginning in July 2023 and continue through 2025. The rate structure plans, which were recommended in studies conducted by Raftelis Financial Consultants and Baker Tilly Municipal Advisors, would increase water rates by 8 percent and increase current sewer rates by approximately 4 percent per year over the three-year period.
The City of Saginaw has a substantial amount of capital improvements planned over the next six years for its water system, which services the City of Saginaw, as well as to 20 wholesale customer communities in Saginaw County and portions of Bay and Tuscola Counties. Several capital improvement projects are also planned over the next decade for the city’s sewer system.
The City believes the 3-year planned increase in water and sewer rates will be easier on residents than a large, one-time increase, while helping to stabilize revenues and cover upgrades for both departments. Paul Reinsch commented on the need for these capital improvements. “We have to continue to invest in our system. This new rate plan will help to service the capital improvement projects that are necessary for our daily operations,” Reinsch said. “There are several critical upgrades that must be completed in the next two to three years. We owe it to our customers to see all projects through to completion and keep our systems up to date.”
Saginaw Mayor Brenda F. Moore commented on the impact of the new rate structure on residents, “We have to raise rates when necessary to protect the community water and sewer system investment," said Moore. "So, what the customer should expect from this change is safe, reliable drinking water, a long system lifespan, and efficient use of financing.”
To see how this new rate structure will impact Saginaw residents, click here
To view the February 20, 2023, water and sewer rate presentations, click here