The Orion Township Board of Trustees approved new sewer rates for the period of July 1, 2009 to June 30, 2010.
The vote was 6-1 at their regular meeting on June 1.
Oakland County Drain Commission increased the rates to $1.64 per residential equivalent unit (REU).
It is a cost the township takes on. According to Bill Ireland, director of public works, the current rate of $50.75 per REU will be maintained.
‘We’re absorbing that cost through our fund balance,? Township Supervisor Matt Gibb said.
Some accounts, around 225, will be affected by a few minor changes.
Some larger users could see an increase of $7.20 per quarter.
Trustee JoAnn Van Tassel was the sole dissenting vote. She pointed out there were operating losses in the 2007 and 2008 Water and Sewer Fund that were offset by interest earned on money in the fund balance.
‘That fund balance was built up to pay for replacement of sewer lines and water lines as they age,? she said.
Some of the lines were installed in the early 1970s and could need replacing soon, Van Tassel added.
In a memo written to the board, Van Tassel wrote, ‘While it is possible to use the fund balance to cover the shortfall, it is not a good practice. The fund balance or retained earnings should be set aside to pay for repairs to or repair existing lines.?
The three percent increase doesn’t cover the expense the township has in maintaining its system, she added.
Trustee Neal Porter said experts have said he doesn’t think we need to beef up water and sewer funds right now, especially in the tough economic times.
Gibb said he would like to take a look at changing things around next year.