City Council Votes 4-0 To Recommend Rate Changes To Offset Inflation and Capital Needs
The Portage City Council approved water and sewer rate hikes for Fiscal Year 2026-27 during their City Council meeting on Tuesday.
The increases aim to offset inflationary cost pressures, anticipated capital improvement needs, and increases in sewer treatment charges from the City of Kalamazoo, according to records.
Water customers will see their commodity rate per thousand gallons increase from $3.82 to $4.01 for Fiscal Year 2026-2027. A typical residential customer may pay an increase from $26.22 to $27.53 for Fiscal Year 2026-27, which represents a change of just under 5 percent.
Sewer customers will see a larger increase. The commodity rate per thousand gallons will rise from $7.03 to $7.66. A typical residential customer may pay an increase from $38.56 to $41.26 for FY26-27, which represents an 8.44 percent increase annually for a typical sewer customer.
Rate Study Committee Completed Review
The hikes come after the City Council Water/Sewer Rate Study Committee completed its review of the 2026 Utility Rate Financial Study prepared by City Administration.
The committee voted 4-0 to recommend these changes to the Portage City Council.
The hikes take effect July 1, 2026.
Officials Say Water System Requires Future Adjustments
City officials also noted that due to a mature water system, along with a low percentage of new customers connecting to the system and significant system improvements, the water rate will require adjustments in the future.
The Portage City Council also set the final adoption of the Fiscal Year 2026-2027 Proposed City of Portage Budget and proposed 2026 tax levy for May 26, 2026.
The City of Portage approved water and sewer rate hikes during their City Council meeting Tuesday.
Sources: WWMT