Summary
The Suttons Bay Village Committee of the Whole met on May 6, 2025, primarily to review staff reports and discuss a proposed multi-year water rate increase (Report VSB-2025-16). No formal votes were recorded; the committee's action was to discuss the rate proposal and forward a recommendation to the Village Council.
Infrastructure Projects
DPW Director Dave presented a detailed water/sewer rate analysis. The Village's water rates have not increased in 17 years (since 2007), while operating costs have risen sharply: well pump replacements now cost about $30,000 each (Village has 4 wells, ~10-year lifespan), and fire hydrant replacements cost about $10,000 each. The Village has not qualified for recent grants or loans for its water system and continues seeking funding for a 7+ mile water line replacement project and water storage expansion.
Using CPI inflation data (2007 CPI 207.3 to 2024 CPI 314, a ratio of 1.5147), the report calculated an inflation-adjusted rate of $4.47 per 1,000 gallons versus the current $2.95. Comparisons to Lake City, Empire, and Mackinaw City showed Suttons Bay's average monthly bill ($22.86) is well below the peer average ($32.63), and its Ready-To-Serve (RTS) fee ($9.58) is far below the peer average ($19.60).
Staff proposed a 5-year incremental increase: water commodity rates rising from $2.95 to $3.95 (2025), $4.70 (2026), $5.45 (2027), $5.95 (2028), and $6.45 per 1,000 gallons (2029). RTS fees for the most common 5/8"–1" meters (95% of customers) would rise from $9.58 with an initial 25% increase in 2025, reaching $20.94 by 2029, with smaller percentage increases for larger meter sizes. Capital fees were not part of this proposal and remain unchanged. Staff recommended adopting the plan with a review after 2026.
Other Business
The agenda included DPW, Marina, WWTP, and Treasurer reports, along with committee member comments and announcements, but no details or outcomes were recorded in the document.
Financial Summary
- Current water rate: $2.95 per 1,000 gallons; current RTS fee: $9.58 (5/8"–1" meters).
- Proposed 2029 rates: $6.45 per 1,000 gallons and $20.94 RTS fee.
- Well pump replacement cost: ~$30,000 each; hydrant replacement: ~$10,000 each.
- No grants or loans have been secured for water system improvements; capital fees remain unchanged.
Action Items
- Committee to forward a recommendation on the proposed water rate increase (VSB-2025-16) to the Village Council.
- Staff recommended revisiting the percentage increases after 2026 and making adjustments as needed.
- Continued efforts to secure funding for the water line replacement project and water storage expansion.