By Dan Shriner
Review Editor
Lake Orion residents will see their water and sewer bills increase by about $16 per month on average for a family of four from March 1 through the end of the year.
The village council approved the increases after weeks of discussions about how to stem the flow of losses from the water and sewer fund.
‘We are seeking a zero loss by the end of the year,? Orion Village President Ken Van Portfliet said of the need for rate increases to stem the losses.
Between now and the end of the year, council said they needed to look closely at what would need to be done to repair or replace parts of the village’s aging water and sewer system infrastructure.
There are engineers trying to determine what needs to be done, according to village officials, and they agreed they will know more later this year and will act accordingly to adjust rates, which will most certainly be higher.
In the meantime, it was necessary to stem the losses, officials said.
Residents will see increases to the current rate of $2.60 per unit of water to $2.66 per unit, an increase of 2.3 percent. The costs of sewer treatment will increase from $2.10 per unit to $3.36, an increase of 60 percent. The increases will be through the end of the year and would revert to the current costs if the village council does not act to initiate adjusted rates by that time.
Village Manager Darwin McClary and council members stressed the need for the increases and noted there have been none since 2006. The water and sewer fund has been experiencing losses since 2011, when there were operating deficits of $21,481. By June 2012, they were $75,463, in June 2014, they were $86,440 and by June 2015 the losses climbed to $328,408.
According to a report from McClary: ‘The operating losses are growing substantially each year while fund reserves are decreasing. At the current rate of operating losses the village can expect to realize fund deficits within the next three to four years unless action is taken to adjust losses.?
Council member Christian Mills said the village can review the fee structure at least every six months to try to keep costs as low as possible but still maintain the system without losses. He also said it is inevitable that the aging system needs to undergo repair and renovation.
‘We have a system that is aged and needs to be replaced and we don’t know the extent of it,? he said.
McClary and the council members agreed that an engineering study will provide important information in the coming months about what is needed. Rates will increase as a result of what is needed for the improvements but officials vowed to work to keep the costs as low as possible.
One resident, Fred Flemming, said he was concerned about how the increases might affect senior citizens and veterans who may not be able to afford them.
‘It’s difficult getting people to understand what needs to be done,? Flemming said.
VanPortfliet vowed that the council would be transparent with residents during the process of analyzing the aging system and what needs to happen.
McClary said he also has spoken to Oakland County officials who have told him that there will likely be increases in coming years of about 11 percent annually for sewer costs and about eight percent for water. He said these fees can be attributed to increased charges from Detroit, Orion Township, labor costs and some debt expenses.
These expected increases, coupled with the need for infrastructure improvements, will mean that village residents will be paying more for their water and sewer services for some time. How much more, village officials said, will be determined later in 2016.