City council hosts first reading of ordinances to increase rates
Published 10:02 am Wednesday, June 12, 2019
DOWAGIAC — Residents of the city of Dowagiac will likely soon see an increase in their water and electric rates.
Monday evening, the Dowagiac City Council hosted first readings of two ordinances, one to amend water rates and one to amend electric rates. Second readings for the ordinances will be hosted at the June 24 meeting, where the city council could vote to approve the ordinances.
“We are looking at some water, electric rate ordinances that call for some increases,” said City Manager Kevin Anderson.
Under the proposed water rate ordinance, a typical four-person household using 4,000 gallons of water can expect an increase of $3.95 on its bill due in August. The council last adjusted water rates in July 2017. Under the proposed electric rate ordinance, a household that uses 500,000 watts per month can expect a $5 increase on its bill due in August.
Both rate increases were included in budget projections for the 2019-2020 budgets that were adopted by council in May.
According to Anderson, one of the main reasons for the proposed ordinances is to adjust rates in line with rising inflation costs. Additionally, in the case of the water ordinance, the increase would also ensure that the city is appropriately funding capital improvement projects.
“The primary purposes behind these rates are to keep pace with what our increase cost in each of these is,” Anderson said. “These are primarily to deal with the typical cost of living expenses that we have been seeing.”
Also Monday,
• The council approved a resolution to allow the city to pursue participation in the Redevelopment Ready Community Program, which is being directed and implemented by the Michigan Economic Development Corporation. According to Anderson, all future grants through the MEDC will receive priority if the community is engaged and working towards RRC certification.
On June 6, the city submitted its application to the MEDC to be a part of the program. In addition to the application, a municipality must also provide a formal resolution from the city council in support of the city’s participation through the program.
According to the resolution, the city will be taking RRC training and be looking to identify opportunities for growth, change and simplification.
“Since the city has committed to work on quality of life projects, like the housing initiative, it is essential that we follow the course that will allow us to receive as much grant money as possible to assist us in these endeavors,” Anderson wrote in a memo to the city council.
• The council voted to approve the purchase of two replacement patrol vehicles for the Dowagiac Police Department. The council approved the purchase of two 2019 Dodge Charges AWD patrol vehicles from Galeana’s Van Dyke Dodge at a total cost of $49,069.50.