Independence Township residents and business owners will see an increase in their sewer rates beginning in the next billing cycle on July 16, according to Department of Public Works Director Dave McKee.
Customers will see approximately $3.29 per REU (Residential Equivalent Unit) per quarter or $1.10 more per month.
“We’re not increasing any of our operating expenses,” McKee said. “I just want to make that clear. This is just strictly the pass-thru for the increases we have from Great Lakes Water Authority (GLWA), water resource commission for Oakland County and associate other charges that go with that.”
The GLWA was established as the regional authority in January 2016. Prior to that, the Detroit Water Sewer Department (DWSD) was the regional authority.
“DWSD still exists, but are essentially like us, they run the City of Detroit. The Great Lakes Water Authority is now the regional authority who has control over waste water and distribution systems throughout southeast Michigan,” McKee explained. “In keeping with DWSD tradition, they send out their new rates for sewage disposal approximately every May to all the communities that are serviced by them.”
The current sewage system disposal rate for the township is $230,834. The new rate will be $253,144, which is a 9.7 percent increase or $22,310 a month
In addition to the sewage disposal rate, additional components increasing the township’s total monthly obligation for sewage disposal services includes the GLWA Industrial Surcharge and Waste Control rate, which will be $7,315 per month. McKee said this is a 40 percent reduction from last year’s amount of $12,272.
“Industrial waste charge is essentially anyone who is a non-residential customer,” he added. “A 40 percent reduction is some good news right there. So essentially we’re going to save a couple bucks right there. That’s a wonderful thing.”
The Flow Based True-Up Charge will be $2,382, which is $982 more than last year’s $1,400. However McKee said the township’s percentage share on the cost only is up 0.28 percent.
“True-up costs are due to the reallocation of capital cost and interests on outstanding debt on all the OMI (Oakland Macomb Incerceptor) bond issues,” he noted. “Essentially what it means is as our interest goes up, we’re responsible for more and more of that debt.”
The bond rate debt for 2015-16 is $26,340 per month. The township’s obligation on this debt will be increasing 18.6 percent or $49,745 bringing the 2016-17 cost to $316,080.
McKee said the bond debt is paid by all communities serviced by the Clinton-Oakland and Oakland-Macomb Interceptor to pay for upgrades of those systems.
“They were neglected for many, many, many years,” he added. “There are multi-million projects they’re doing to keep roads in Sterling Heights from collapsing. They found some terrible things, but they’re really getting after it now.”
The township’s total obligation will be $578,921 a month.
The township’s total sewage obligation for the year is 3.4 million. The total number of REU’s that Independence Township currently has is 11,000. So the township’s quarterly rate will be $78.87, according to McKee.
The township’s current operating charge in Independence Township to residents is $28 per REU.
“That hasn’t been changed in quite some time and I don’t foresee it changing this year,” McKee said. “I believe we’ll be alright right there.”