At the last City Council meeting on May 19, Council adopted the City Manager’s proposed budget for the 2025-2026 fiscal year. This budget will be in effect on July 1 and will fund the City’s operations through June 30, 2026. As part of the budget, they also approved updated water and sewer rates that you’ll see reflected in your utility bill after they take effect on July 1. 

 

The increased rates are due to cost increases from the Southeast Oakland County Water Authority for water and Oakland County for sewage and stormwater service. They will also help cover some of the costs related to the unfunded mandate by the State of Michigan to replace all lead water lines in the City, as well as the increasing costs associated with infrastructure maintenance. For more information about our regional water system, you can visit https://www.semcog.org/onewaterresources.

Your utility bill is issued quarterly and includes fixed costs for refuse and storm water (noted on your bill as “Refuse, res.” and “Storm Water”) as well as fixed “Ready to Serve” costs that help maintain the infrastructure, equipment, and services needed to provide both water and sewer services (“RTS” on your bill). Your bill also includes variable costs for water and sewer services (“Water” on your bill) that reflect your 3-month usage. The variable water and sewer costs are the only change you’ll see on your bill in the upcoming fiscal year – the fixed costs will all stay the same.

What does this mean for the average resident’s utility bill? The variable costs will increase by 10% (Water Service) and 9.9% (Sewer Service) per unit used, while the fixed costs will not change. An average user in Berkley utilizes 15 units quarterly, and would only see an increase of 5.7% in their total bill, as shown in the graphic that appears in this article. Please note that water usage varies significantly between households and depending on the season. The average reflecting 15 units is used for the purpose of modeling a bill.

Affordability and assistance programs are available for those in need. In Southeast Michigan, there are a variety of programs to provide both short-term and long-term assistance to residents. Information about these programs is available by clicking here.

Do you have questions about your utility bill or the water and sewer rate increases? Reach out to our finance department at finance@berkleymi.gov. There will also be a presentation about these updates at a future City Council meeting.