Despite it being called into question at last week’s Leelanau Township’s regular board meeting, the Northport-Leelanau Township Utility Authority (NLTUA) can enforce municipal sewer rate increases, even if the majority of one of the constituent municipalities does not approve of the cost.
Earlier this month, the Northport Village Council unanimously approved the NLTUA’s annual rate increase as well as an additional loan request of $190,000 for capital improvements. The village approved the rate increase after the NLTUA conducted a comprehensive utility rate study that highlighted three options as to how to move forward in an already “cash critical” state, going with “scenario one” of three options, which proposed the 8% annual increase over the next four years.
The report also noted that “inflation and capital costs are increasing at unprecedented rates and the projection should be updated every year with the budget process to ensure the findings in this report are on track.” According to the utility study proposed rate design and impacts at 8%, the operations and maintenance charge will increase to $276.48 in 2025, which is a quarterly increase of $20.48. In 2026, users are expected to be charged $298.60, then $322.49 in 2027, and $348.29 in 2028.
