After learning the Village has experienced an increase of over 35 percent in Water Power rates from the Michigan Public Service Commission over a four year period, the Climax Village Council began discussing the possibility of increasing water usage and service charge rates at the April 21 regular meeting.
A Water Power rate in Michigan is a utility charge designed for high-volume, primary voltage electric service used for public potable water pumping and wastewater systems.
Village Council President Bill Lewis said for 2025 and 2026, a 16.1 percent Water Power rate increase was proposed and approved by the Public Service Commission.
In 2023, there was an 18 percent Water Power rate increase and a 1.61 percent increase in 2024 by the Public Service Commission.
When also considering water usage is down approximately 20,000-40,000 gallons a day compared to previous years, Department of Public Works Manager T.J. Gibson and Lewis felt the Council should begin discussing an increase in water rates. The DPW Manager added it is important that revenue meets rising costs in the water system.
While the Village’s Water Power rates have increased over 30 percent, Lewis and Gibson felt implementing a 30 percent increase would bring concern from village residents and arrived at a 16 percent increase.
A 16 percent increase on the current $3.80 per thousand gallon rate would be .61 cents, pushing the rate to $4.41 per thousand gallons, however a rate of $4.40 could be considered.
Lewis and Gibson also reviewed what increasing the service charge by 16 percent would look like. Lewis said a 16 percent increase would bring the service charge from $25.00 to $29.00 per quarter.
Lewis adds the service charge increase will generate $4,000 more in yearly revenue, from $28,000 to $32,000. The water usage increase would generate approximately $11,000 more revenue a year for the water system.
The proposed water rates would take effect in July, meaning village residents would see the increase with the October water bills.
Lewis adds the Village’s water rates are still lower compared to other area municipalities.
“That gives us some time to make sure that they (village residents) understand that the rates for everything we’re buying for that (water) system are going up and we need to make sure we’re supporting that system,” explained Lewis, who said the Village currently sends out 283 water bills each quarter.
Because a resolution is needed for any proposed water rate changes, the Council is expected to continue discussion on water rates at the May 5 meeting and possibly consider the proposed increases at the May 19 meeting.
DPW Report
In his Department of Public Works report, DPW Manager T.J. Gibson said new Memorial Day banners on the north and south sides of the village were installed by Burkett Signs.
Flower planting in the village will begin soon.
Tree Removal, Striping Estimates Reviewed
After reviewing an estimate from Ace Parking Lot Striping for striping in the Village for $6,277.45, the Council accepted the quote by a 4-1 vote (Carolyn Kelly voted no and Denise Pyle and Ben Moore were absent).
Streets/Sidewalks/Census Chairperson Janet Sutherland provided four estimates from W.T. Forestery LLC for removing one tree at 138 and 140 North Church Street and removing two trees at 250 North Church.
Gibson identified one tree for removal at 250 North Church Street near the fire hydrant at a price of $3000, and one tree for removal at 138 North Church, at a price of $2,500, as priorities.
Three other companies submitted bids.
The Council will request clarification and actual copies of the estimates to review at a future meeting.
In other items covered at the April 21 meeting:
• Climax Township Assistant Fire Chief Sean Perrin reports there were 20 calls for service in the township in March, including three calls in the Village, which were medical related. The local fire department responded to three mutual aid calls out of the township including two medical calls and a vehicle accident.
Perrin adds the local township fire department started a new arrangement April 1 with Wakeshma Township as fire and medical first responders. He said everything has gone well.
Wakeshma Township was previously a part of the South Kalamazoo County Fire Authority. With Wakeshma Township leaving the SKCFA, Perrin said Climax Township added two firefighters from the SKCFA and two residents who live near Fulton that are medics with Life EMS. Perrin adds there is one perspective firefighter in the fire academy.
• Public Safety/Fire/Law Enforcement/Disaster Planning Chairman Nick Ludwig said with the better weather here, he referenced Code 32-23 in the Village’s Code of Ordinances that states operation of a motor vehicles on a bicycle path and sidewalks is prohibited. The only exception is a motorized wheel chair.
• Ordinance/Zoning/Planning & Development Chairperson Carolyn Kelly said the committee has been working on zoning issues at two addresses in the Village with SafeBuilt, the company the Village uses for permit and ordinance violations.
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