City water and sewer rate ordinance changed

By Grace Lovins

Updates to Birmingham’s water and sewer rate connection fee ordinance were unanimously adopted by city commissioners during the Monday, June 9, meeting, putting into effect recommendations made following a study conducted by engineering and architectural services firm Hubbell, Roth & Clark, Inc (HRC).

Finance director Mary Chavez explained to the commission that the changes, which take effect July 1, 2026, reflect HRC’s recommendations from the Water and Sewer Rate and Connection Fee Study. Chavez wrote in the memorandum included in the meeting packet that the study evaluated the city’s existing rate structure, utility costs, project capital needs and industry best practices.

Under the approved rates, water will increase from $8.87 to $9.66 per 1,000 gallons, while sewer rates will increase from $12.88 to $13.62 per 1,000 gallons. Stormwater rates will also rise, with the Evergreen-Farmington Sewage Disposal District increasing to $101 per quarter per Equivalent Storm Water Unit and the Southeast Oakland County Sewage Disposal District increasing to $84 per quarter.

The city will also replace its existing water meter charge with a new Ready to Serve fee. The fee will total $24.15 per quarter, combining an $18 water readiness-to-serve charge and a $6.15 sewer readiness-to-serve charge. City materials describe the fee as a fixed charge meant to help cover system maintenance, billing, repairs, emergency readiness and debt payments, regardless of how much water a property uses.

Jamie Burton, vice president and treasurer of HRC and professional engineer, explained they are proposing three phases to address three different kinds of issues from 2026 through 2028. The first phase includes eliminating contributions from the city’s general fund.

The second phase is to discontinue using the city’s enterprise fund balance for capital projects and operating expenses, and increase investment in the capital improvement plan to support rate stabilization in the long run. The third phase, Burton said, would include building an emergency balance with the goal of eventually reaching $10 million.

“Instead of doing all of this at once … Step one: stop using the general fund,” Burton said. “Step two: stop the hemorrhaging of your savings account. Then, step three is to start building that back up to get a proper savings account both on water and sewer.”

Commissioner Therese Longe raised concerns about how residents would be educated about the change, specifically replacing the meter charge with a new RTS measurement. Chaves said staff prepared an FAQ document that will be included with the water bills and posted online.

In the end, commissioners voted unanimously to approve the changes to the ordinance.