FLINT, Mich. (WJRT) - Members of Flint's City Council are pushing for the adoption of a new Water Stabilization Fund aimed at easing the financial burden on residents due to upcoming water rate increases. The initiative was introduced by Flint Mayor Sheldon Neeley during his budget presentation approximately two weeks ago.
As water rates are set to rise by 5.9 percent this year, several council members from the 2nd, 4th, and 7th Wards are emphasizing the need for this fund. Without it, residents would be left to shoulder the additional costs stemming from a deal made with the Great Lakes Water Authority (GLWA) back in 2017. 2nd Ward Councilwoman Ladel Lewis is adamant about protecting residents from further financial strain, stating, "With the high rising cost of food, with the rising cost of everything, we will not and we are committed that we will not add rising water rates to their added costs."
The increase in water rates has been attributed to the GLWA, the city's designated water service provider, which has brought about this recent rise. Mayor Neeley's plan, however, aims to mitigate this impact by reallocating $2 million from American Rescue Plan Act (ARPA) funds. This financial maneuver is designed to give the city some breathing room as they work to restructure their water rate system.
4th Ward Councilwoman Judy Priestley remarked, "This gives us breathing room to try to restructure our water rate system so that we can hopefully minimize any impacts in the future to our residents." It’s important to note that while this stabilization fund is projected to provide temporary relief, the city remains bound to its long-term contract with GLWA, which extends for the next 22 years.
As council members aim for this stabilization initiative, they are also actively exploring avenues to secure additional funding. 7th Ward Councilwoman Candice Mushatt commented, "We are working with the administration as the council president said to identify grants and to identify other sources of revenue that we can use to not only stabilize the water fund, but eventually get us to a point where we can hopefully lower the rates." However, the council is not currently considering approaches to terminate the 30-year contract with GLWA.
Mushatt added, "The only thing that we are looking at right now is 1) getting this stabilization passed and then 2) figuring out more revenue. And then anything beyond that right now, our focus has to be on making sure the rates are not passed to residents."
The Council's initiative requires approval from the Special Affairs Committee before it can be finalized by the full council body. That committee is scheduled to convene again on Monday, March 24, 2025. The members hope to pass the fund that day, sensing the urgency of the water rate increase looming ahead.
In summary, while the Water Stabilization Fund is a stopgap solution, city officials remain focused on finding long-term strategies to address water infrastructure challenges in Flint. Council members recognize the need for continued diligence in securing grants and exploring alternative revenue streams to potentially alleviate future financial pressures on residents.
