City of Saginaw combined water-sewer rates will begin a three-year increase of about 5 percent annually, falling in line with inflation across the entire economy, after City Council approval at the Feb. 20 meeting.
A typical household of three or four people that pays $90 a month now will see a first-year increase to the $95 range that begins in July, with similar hikes the following two years.
We call these water bills but nearly two-thirds of the money is for sewers. Residents still are paying for major expansions of retention basins that were ordered by the EPA more than 30 years ago, mostly because Bay City complained about E-coli in water that arrives via the Saginaw River basin. Ironically, Bay City’s water quality nowadays is below Saginaw’s.
The sewer increase is the first in 15 years, and the water hike is the first in three years.
The city has a few suburban sewer customers but nearly 30 for water, spanning almost all of the county and even some communities across the county border, such as Reese.
State law prohibits the city’s water system from making a profit on sales to suburban and outcounty localities. The idea was explored 20 years ago by Cecil Collins and Andre Borrello, former city manager and city attorney, with no action resulting. If a non-city resident pays less than a city dweller, it’s because the sewer portion is lower, not the water.
Even with the increases, Saginaw will continue to provide some of Michigan’s lowest-cost tap water (less than a penny per gallon) via a late 1940s pipeline from Lake Huron that begins 65 miles north near Tawas, also serving Midland. State law prohibits the city’s water system from making a profit on sales to suburban and outcounty localities. Midland is in better financial shape partly because, during the 1950s, Midland required border communities to annex in order to receive water, while Saginaw did not.
System managers say they will continue to aim for federal and state grants for infrastructure maintenance, or bills would be even higher. Recent examples include $15 million for Saginaw’s first water tower, to be located near the 94-year-old waterworks, across South Washington Avenue between Webber and Williamson, and $5 million to begin replacing the oldest lead household water lines. State mandates for lead-line replacement took root after the Flint Water crisis during the past decade, even though lead problems in Flint were not caused by the pipes themselves, but by switching from Lake Huron to the Flint River without making proper treatment adjustments prior to the water entering the system’s pipelines.
Planners reported that while a typical family uses about 4,000 gallons a month, or about 130 gallons a day, a single individual may consume less than 1,000. Water use is trending slightly downward because people are using less as costs rise, all while water-use appliances are becoming more efficient. Today’s use of bottled drinking water, at up to 100 times the cost of city water, does not have a big impact.
Former Mayor Del Schrems proposed trying to sell bottled city water during the 1980s, but did not follow through.
(To view the water and sewer reports, click here)
In other business…
- Unfunded applicants continued their protests. Women of Colors made a repeat appearance, along with Mission in the City. New among the appellants is the American G.I. Forum, seeking support for a youth tennis program with a base at the newly-renovated Garber Courts. At the close of a session that exceeded four hours, Council members approved $200,000 for Women of Colors, but did not address Mission in the City or the G.I Forum.
- ARPA fund recipients will be subject to monitoring, in part based on past track records, and will not be required under “reimbursement” to have total matching funds on hand. Some grantees have asserted that the guidelines are too rigid. City Manager Tim Morales pledged that he and his staff will continue working with them on an individual basis. Councilwoman Monique Lamar Silvia was critical that Guidehouse consultants may charge beyond its original $850,000 contract for monitoring. Morales, Mayor Brenda Moore and Pro-Tem Annie Boensch responded that the original Guidehouse pact does not include post-allocation monitoring. Saginaw’s American Rescue Plan Act grant is $52 million, and Morales said about $890,000 remains available. (For info, click here)
- Also regarding grantee contracts, the Council tabled a proposal from Boys & Girls Club to amend their grant spending because of changing circumstances, based on concerns about showing favoritism. Renewed discussion is slated for the next meeting on March 6. (For the discussion, click here)
- Bids will be solicited to purchase the former Jefferson Apartments building near the south edge of downtown. City Hall took ownership of the vacant structure more than 10 years ago. Oversight will include both the lowest and “best” bid, which gives the city some say-so over maintaining a residential purpose.
