Farmington Hills to replace minimum water/sewer bills with 'ready-to-serve' and commodity charges starting July 1

The Farmington Hills City Council voted June 8 to adopt a new methodology for water and sewer billing that replaces the existing minimum bill with a two-part structure: a ready-to-serve charge and a commodity (usage) charge.

Assistant Director of Public Services Tammy Gushard summarized the recommendation from Plant Moran and the Oakland County Water Resources Commissioner's Office. Staff said the new structure aims to make billing fairer by separating the fixed costs of maintaining infrastructure from the variable cost of water use. "Some of the lower-volume customers may see a decrease while some higher-volume customers may see an increase in their quarterly bills," Gushard said.

Key elements presented by staff (as corrected for formatting):
- Water: a ready-to-serve charge for 1-inch-or-smaller meters (presented in staff materials as $9.67 per quarter) and a commodity charge of $6.48 per 100 cubic feet of metered water.
- Sewer: a ready-to-serve charge presented as $6.63 per quarter (for 1-inch-or-smaller meters) and a commodity charge presented as $6.71 per 100 cubic feet of metered water.

Staff and council emphasized that roughly 75% of the water bill is a pass-through cost set by the Great Lakes Water Authority; the city controls the remaining share tied to operation, maintenance and debt service. The staff also noted an administrative plan to include a one-page explainer with bills and post guidance on the city website so residents understand why an individual bill may increase or decrease.

Council approved the water and sewer rate resolutions on motions made during the meeting. Staff said the new rates will be reflected in bills starting after July 1.