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KINGSFORD -- Residents will again see a rate increase in their water and sewer bills starting in January 2027 as Kingsford continues to address aging infrastructure and replace water service lines under the state's revised Lead and Copper Rule.
John Holland of the Michigan Rural Water Association was asked to examine the city's rates and provide a recommendation to the council to cover the costs of ongoing projects.
Holland said the sewer and water departments operate as enterprise funds, and must run like a business. The city is not permitted to take money from the general fund for those accounts, he said.
"The budget is the budget and your bonds are your bonds," he said, explaining how he came up with the figures. "You have to make your loan payments and your budget."
Wastewater usage fees will increase from $6.68 per 1,000 gallons to $7.97 per 1,000 gallons. The readiness-to-serve monthly fee for the sewer system will increase from $15.34 to $18.04 for a 5/8-inch meter; from $15.89 to $18.68 for a 3/4-inch meter; $16.24 to $19.09 for a 1-inch meter; $17.27 to $20.31 for a 1 1/4 inch meter; $18.87 to $22.18 for a 2-inch meter; $21.12 to $24.84 for a 3-inch meter; and $23.59 to $27.73 for a 4-inch meter.
The new rates also reflect that the Iron Mountain-Kingsford Joint Sewer Authority has increased its fees over the past three years.
Water rates will increase by 34 cents per gallon for residential to $4.07 per 1,000 gallons. Water rates for commercial and industrial will be $4.07 per 1,000 gallons up to 337,500 and $3.65 per 1,000 gallons from 337,500 gallons up.
The readiness-to-serve monthly fee for water rates will increase from $32.30 to $34.27 for a 5/8-inch meter; $35.06 to $38.25 for a 3/4-inch meter; $40.35 to $42.81 for a 1-inch meter; $44.75 to $47.47 for a 1 1/4-inch meter; $48.98 to $51.94 for a 1 1/2-inch meter; $64.75 to $68.70 for a 2-inch meter; $96.24 to $102.10 for a 3-inch meter; and from $139.93 to $148.45 for a 4-inch meter.
Council members were reluctant to approve the changes, but acknowledged that costs have increased because of utility projects that also include road restoration. Kingsford started on projects to replace water service lines and water and sewer mains throughout the city in 2024. The city has received grants and low-interest loans to help keep project costs down.
The first project focused on an area of the Heights and the second on the Heights and Ford Addition. The third project, a continuation of project No. 2, also focuses on the Ford Addition and some other areas. Project No. 4 will address areas near Breitung Avenue and is expected to start in 2027.
City Manager Mike Stelmaszek reported that project No. 5 hasn't qualified for State Drinking Water Revolving funds like the city's other projects. After the first four water projects are complete, 650 to 750 water services will need to be replaced prior to the state deadline of 2036, he estimated.
In other business, the council:
-- Appointed Anthony Erickson to the city council to replace Daniel Freeman, who resigned due to work commitments. Erickson served on the council for several years, including as mayor, but decided not to seek re-election after 2018 as his two children remained in school. His youngest graduated this past spring. He will serve the remainder of Freeman's term.
-- Approved a $822,604.73 pay request for project No. 2 for work that includes the water main on Cass Avenue, paving and concrete work.
-- Learned brush and garden waste collection will start Wednesday beginning in the Ford Addition and proceeding to Garden Village, Breitung and the Heights. Loose leaf collection will begin Monday, Oct. 19. The city compost drop-off site is open to city residents behind the public works building at 1500 Carter Drive from 7 a.m. to 3:30 p.m. weekdays and 9 a.m. to noon on Saturdays through Oct. 31.
-- Learned that auditor Scott Sternhagen and staff from CliftonLarsonAllen LLP will be at City Hall on Monday.
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Marguerite Lanthier can be reached at 906-774-3500, ext. 85242, or mlanthier@ironmountaindailynews.com.