Detroit Utility Board OKs Water, Sewer Service Rate Hikes

DETROIT (WWJ/AP) - Officials with the Detroit Water and Sewerage Department have approved an average rate increase of 9.3 percent for water customers in the city and suburbs.

The department's Board of Water Commissioners voted unanimously Wednesday in favor of the proposed rates for the 2015-2016 fiscal year. The board also approved a five-year, $1 billion capital improvement program.

The water utility says customers in Detroit can expect to pay an average of 3.4 percent more for water and 16.7 percent more for sewer service, according to the Detroit News. Suburban residents will see average rate increases 11.3 percent for water and 1.1 percent for sewer service.

Officials say the cost of sewer service will increase systemwide by an average of 6 percent.

Detroit City Council still has to sign off on the new rates, which would go into effect in July.

The utility warned customers in February that a rate hike was on the horizon, saying the increase was needed to recoup lost revenue from a drop in usage.

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