DETROIT (WXYZ) — A proposed nearly 13% water and sewer rate hike by the Great Lakes Water Authority could force Metro Detroit residents to make difficult financial choices, with many saying the increases are becoming unsustainable.
Watch Randy Wimbley's video report:
GLWA is considering a 6.8% water rate increase and a 5.9% sewer rate increase for fiscal year 2027, which would be the authority's largest rate increase to date. The proposed hikes would take effect July 1 if approved by the GLWA board during their scheduled vote on Wednesday.
For 79-year-old Paul Koncz of Utica, the potential increase means tough decisions ahead.
"I have to look at ways of paying it, I mean, something else, because I'm on a fixed income," Koncz said. "We have to cut back on something."
Anthony Lambert, a Southwest Detroit resident, echoed similar concerns about the financial impact.
"It's going to hurt me. It's going to hurt me really bad knowing I got other things to pay like my gas, my lights, rent. That's going to hurt my pockets," Lambert said.
The authority says the rate increase is necessary to invest in an aging regional infrastructure system serving nearly half of Michigan's population. In a statement to 7 News Detroit, GLWA said the proposed water system charge increase would provide an additional $7.5 million in funding to expand their strategic watermain replacement program following major watermain breaks in Detroit and Oakland County in 2025.
"Requests for budget and charge increases are never presented lightly," GLWA said in the statement. The authority cited critical capital needs, decreased investment earnings to offset charges, and economic factors as drivers for the proposed adjustments while maintaining focus on affordability.
However, local officials are pushing back against what they see as unsustainable increases. Utica Mayor Gus Calandrino says water affordability has become residents' biggest complaint.
"We understand GLWA's predicament. We have to invest in our system, we have to make repairs. There's water lines and whatnot that need to be replaced. But these unending increases — it's just not sustainable," Calandrino said.
Since 2018, water and sewer system charges have risen a combined 38.75%.
"We have a lot of residents that are either low income or on fixed incomes, and these rate increases recently are far outpacing the rate of inflation," Calandrino said.
GLWA officials say they have absorbed double-digit increases in chemicals, utilities, construction, and other operational costs over the years. Despite the proposed increases, the authority notes its 10-year average system charge adjustment is slightly above 3% for the water system and slightly above 2% for the sewer system.
A GLWA spokesperson noted that final rates paid by customers are set by individual communities based on their own system costs and policies.
READ THE FULL GLWA STATEMENT:
Requests for budget and charge increases are never presented lightly. The Great Lakes Water Authority’s (GLWA) proposed water and wastewater system charges for the upcoming fiscal year reflect the continued need to responsibly invest in an aging regional infrastructure system that serves nearly half of Michigan’s population. These proposed adjustments are driven by critical capital needs, a decreased opportunity to utilize investment earnings to offset charges, and economic/inflationary factors while maintaining a strong focus on affordability. By way of example, in response to the two major watermain breaks experienced in Detroit and Oakland County in 2025, the proposed water system charge increase for FY 2027 provides an additional $7.5 million in funding to begin to expand our strategic watermain replacement program which will assist in our efforts to mitigate the significant impacts created by such catastrophic breaks.
Despite the proposed FY 2027 increases, as well as absorbing several years of double digit increases in chemical, utility, construction and other costs, GLWA’s 10-year average system charge adjustment for the water system is slightly above 3% and slightly above 2 % for the sewer system.
READ THE FULL GLWA BUDGET PROPOSAL:
GLWA FY 2026 2030 Biennial Budget Financial Plan Final by WXYZ-TV Channel 7 Detroit
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