In the future, water and sewer rates in the Village of Lake Orion will be based on a two part basis.
Last summer Bendzinski and Company did a rate study for the village and recommended it set its rates based on a ready to serve charge and a usage charge.
The ready to serve charge would include the costs to operate and maintain the system, a reserve for system replacement and improvement and debt service costs, if any.
The usage charge would be the actual water used.
Currently, the minimum charge for water includes 1,000 cubic feet and the minium charge for sewer service includes 2,000 cubic feet.
In the study, Bendzinski had recommended if the village’s base rate or minimum charge was to include a set amount of cubic feet, the amount ought to be the same.
LO Village Manager JoAnn VanTassel told village council members on April 26, they needed to decide the method to be used to establish water/sewer usage rates before the water and sewer rates are updated. They passed the new formula.
According to the study, some customers would pay more and others would pay less with the different charge structure.