By Dan Shriner
Review Editor
The Lake Orion Village Council took the first step Monday night in what will lead to higher water rates, which officials said is necessary to maintain an aging water and sanitary sewer infrastructure.
The council unanimously approved first reading of an ordinance amendment that will allow the council to set water and sewer fees and charges after first holding a public hearing and then setting the rates by council resolution. Under the existing ordinance language, water and sewer rates may only be altered by a change in the ordinance.
The second reading and adoption of the ordinance changes are expected at the November 9 council meeting. During that time, the council will likely hold a public hearing and then take up the question of how much the rates should increase. There have not been any rate increases in the past nine years.
Village Manager Darwin McClary said the council has been using funds from the general fund to make repairs on water and sewer lines and in 2014 had an operating loss of $268,000.
The village’s water and sewer systems depreciate out at 50 years, which the Lake Orion systems are nearing. Repairing, replacing and maintaining the 1,200 sewer leads in the 45-year-old system are estimated to cost about $12 million, over the 50-year period.
The $12 million would ultimately come out of the taxpayers? pockets, McClary said, adding that some village residents are struggling to pay their water and sewer bills.
McClary said the village is expected to receive a grant from the state for $596,000, which it must pay back over a period of years, to study the water and sewer lines using video and other methods. This allows for repairs and improvements to be made after learning where problems exist. The work to make those determinations could begin in November.
McClary said the village buys about 153,818 units of water per year from Orion Township. One unit of water is 100 cubic feet, which is 748 gallons.
The village’s sanitary sewer use is about 197,710 units per year. The village pays the costs of sewage disposal to Oakland County.
McClary noted the difference between water use and sewage use is nearly 46 percent higher and shows that the sewer lines are allowing outside water, such as from rain and other sources, to enter the sanitary system.
‘We will have a good idea of what our sanitary sewer needs are after the study is completed,? McClary said.
Repairing or replacing those problem areas will save the village money, McClary and council members said.
‘This will help us to determine what we need to do and over the next year we can determine what our needs are,? said village president Ken Van Portfliet.
McClary said he would recommend that the village increase sewer rates so that repairs and improvements can be made over the next 50 years or more.
‘I would recommend 100 percent,? he said, which would mean taxpayers would cover a $12 million cost spread out over 50 years. ‘Council could decide to fund it at 75 percent or some other amount.
‘We need to balance fiscal responsibility with the ability of our customers to pay. We want to try to be sensitive to those who are struggling to pay.?
Council member Christian Mills said he believes the council must try to be responsible and increase rates so that the water and sewer funds can be self-sustaining but he also said that the village needs to try to establish ways to help those who are struggling to pay bills.
Council member Dave Churchill said the village has many elderly residents and they should not be burdened too much too soon. He said costs should be spread out over a long term.
McClary said he would likely recommend any rates increases begin in January and go through July 2017. At that time, council could review the rates and adjust them accordingly.