City approves water

rate transition

<B>GRAND BLANC<$> -- At last Wednesday’s council meeting, the city voted to begin transitioning its existing water rates to bring the city in compliance with the ruling of the Bolt case in Lansing.

Effective with the June 21 bill, water will be billed at $18 per 500 cubic feet plus $1.89 per 100 cubic feet. Currently, water costs $23 per 1,000 cubic feet plus an additional $1.75 per 100 cubic feet.

“We will do another rate change in the next year to make it into a cost of service charge,” said City Manager Randy Byrne.

The Bolt case stemmed from a 1998 Michigan Supreme Court case when Lansing resident Alexander Bolt challenged the city’s ‘rain tax.’ The ‘rain tax’ provided for the storm water enterprise fund to help with the costs associated with administration, operation, maintenance and construction of a new storm water system to separate sanitary and storm sewers. The city maintained that the cost charged to residents was a ‘user fee’ but Bolt declared it was a tax. In the end, the court sided with Bolt, stating “that the storm water service charge is a tax, for which approval is required by a vote of the people.”

Byrne said that most communities in Michigan have a rate system in place that is based on minimums, but with the Bolt case, communities should look at getting away from charging minimums.

With the new transition, many residents will wonder what the bottom line is, but Byrne says the actual dollar amount with the new rates is not much different from the current rates.

“Customers who use smaller amounts of water will see a decrease in cost and customers who use larger amounts of water will see an increase,” said Byrne.

The city also will transition the sewer rates after the water rate changes are completed. “We hope to have the new rates for both fully implemented within the next 18 months,” said Byrne.

In other news:

· Council approved the concept and dates for a fall festival. The festival is scheduled for September 13, 14, 15 and 16, and will include rides, food, and entertainment. Details of the festival to be determined. -- <B>N.B.<$>

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