Farmington Hills Officials Cast Votes of 'Moral Indignation' Over Water, Sewer Rate Hikes

council members Dr. Randy Bruce and Cheryl Oliverio were the voices of "moral indignation" Monday, casting protest votes over another round of sewer and water rate increases for 2012-2013.

"While I understand we have to approve this," Bruce said, "I still can never get a whole clear understanding why these water rates have gone up so much."

The city has seen a 140 percent increase over the past 10 years, he added. 

Representatives from the Oakland County Water Resources Commissioner (WRC) office and Detroit Water and Sewerage Dept. (DWSD) were on hand to answer questions, although officials didn't seem satisfied with their answers. 

Sue Coffey, a WRC manager, said the basic calculation divides the total estimated cost of operating the system by estimated water sales. When sales decline, she said, the rate goes up.

"Water conservation is a good thing, but we also have costs we have to cover," Coffey said. 

The city's overall sewer rate is expected to increase 9.3 percent, or $9 more per quarter for the average user. The water rate will climb 5.4 percent, or $6.79 per quarter for the average user. 

Part of the increase is due to 2011 water sales being 6 percent lower than anticipated, Coffey said. WRC officials have forecast water use at 1.3 percent less than 2011's actual rate, and sewer use at 4 percent less. 

Frustrated last year by rising rates, city officials hit on the idea of building a water tower in order to store water pumped during off-peak hours, to reduce use during peak hours, when water rates are highest. Oliverio wondered whether projected savings would translate into lower rates, given the fixed costs that have to be covered.

"Yes, the rate's going to go up," council member Richard Lerner replied. "However, we will be sharing some of that cost with communities in Oakland County that don't have a water tower, so they will pay a larger share." 

WRC manager Jody Caldwell added that if more communities use water storage to reduce peak usage, "theoretically, there will be a savings in the system as well."

James George, who is DWSD's assistant director of finance, said the Detroit area has the 8th or 10th lowest water rates in nation, among systems of similar size. Michigan also has some of the best quality water in the country, Brickner pointed out.

But council member Ken Massey remained unconvinced, citing financial scandals that have plagued the system. "There's an issue here of transparency," he said. 

Still the rates were approved, on a 5-2 vote. 

"I said yes, but it's only because you're not allowing all of us to be morally indignant," Massey said of his votes.