VBT keeps water, sewer rates the same for 2022

Van Buren Township residents and businesses will not get a raise in their sewer or water rates in 2022.
At the Oct. 5 regular meeting of the township board by zoom, Supervisor Kevin McNamara said, “We scheduled a lot of work this year and couldn’t do them so there will be no rate increase.”
Dawn Lund of Utility Financial Solutions appeared by zoom and said she just got off a plane. She said she was hired to study the township’s rates and check key targets to see if a rate adjustment is needed.
“The idea is to keep the rates as low as possible and keep the income as needed,” she said, as she showed charts on the screen.
She said in 2028 the township will need to be prepared as the cash balance is dropping. She said currently the water and sewer department is operating at a loss, but has a robust plan and currently has a healthy cash balance.
“You have a robust water improvement program, but COVID has delayed or stalled it for one to one-and-a-half year.
“You can hold the rates steady until the capital improvement program gets on track,” Lund said, recommending no water rate increase in 2022 and 5.9% per year in 2023 through 2030.
“Once the capital improvement program gets back on track, you can reinstate the rate increases,” she said.
The sewer rates are the same as for water rates at 0% increase in 2022.
Lund said the capital improvements have somewhat stalled, but they can begin the rate adjustments for sewer in 2023 at 3.9% a year and it should be upgraded every year.
“We have a high confidence in your numbers,” Supervisor McNamara said to Lund.
James Taylor said there were some very expensive projects the township was not able to initiate or complete and the money is still in the coffers. He said they didn’t feel an increase now was appropriate.
Taylor, retired director of the water and sewer department, now is operating as a consultant for the township.
“We couldn’t get permits to move forward and we were ready to move forward,” Supervisor McNamara said.
“Others have problems getting employees and sometimes we’re going to run into these hiccups,” Taylor said.
In other business at the 43-minute meeting, the board:
• Approved the 2022 proposed water and sewer rates, which are the same as 2021, and the Water & Sewer fee schedule;
• Approved a Commercial Fireworks Display permit for the Michigan Fireworks Club for the fireworks after the Chamber of Commerce Winterfest Parade on Dec. 4. The fireworks will be from the Denton Road bridge, which will be closed for the event;
• Approved awarding a contract to D&D Water & Sewer, Inc., in the amount of $220,577 with a 10% contingency amount for the Denton Road Water Main Replacement Project. The project was advertised and six bids were received and D&D was the low bidder, $72,241.80 lower than the next bid of $299,818.70. Taylor said the line runs across Michigan Avenue and is really bad shape. “We had to shut it down and needed to put in a fully functional water main,” Taylor said;
• Approved a contract not to exceed $53,400 with Fishbeck, Inc. for engineering services for the Denton Road Water Main Replacement Project;
• Heard McNamara say that the museum currently is closed and it will open again, following “the system we do for everything to get public comment”;
• Heard Trustee Donald Boynton say the plant came that day from the township in honor of the loss of his mother-in-law, and his wife “can’t take the smile off her face”;
• Heard Recreation Director Jennifer Zaenglein remind everyone of the costume drive that allows donated Halloween costumes to be selected and picked up by children from 4 to 6 p.m. Oct. 18-22 in the senior dining hall. This is leading up to the Candy Loop from 4 to 6 p.m. Oct. 23 at Quirk Park. Rain date is Oct. 30. Register on the website;
• Was advised by Deputy Supervisor Dan Selman that Alyssa Albrecht of the communications department is leaving for a new job after two years of service. He said she had a wealth of knowledge and positive energy and she will be missed;
• Heard McNamara say Jim Taylor is leaving, as well, and actually has left, but he is still consulting for the township. McNamara held up a plaque that was made for Taylor and had just arrived. McNamara said the township has one of the lowest water rates in the county. Taylor thanked the board for the opportunity to serve for 10 years and thanked them for the professional courtesy shown to him; and
• Heard Clerk Leon Wright say October is Breast Cancer Awareness Month. He invited people to come in and sign a ribbon for the program.
Closed-door session
On Oct. 4, the township board met at 5 p.m. via zoom to go into closed session to discuss the strategy and negotiation of the Police Officers Labor Council collective bargaining agreement and to consider the contents of an attorney-client communication. The board reconvened at 6:34 p.m. and adjourned without taking any action.