Tecumseh City Council OK’s new water rates, charges

TECUMSEH — Part of the cost to flush a toilet, take a shower or do the dishes in Tecumseh will go down starting in July, but overall water and sewer bills in the city will likely increase.

New water and sewer rates adopted Monday by the Tecumseh City Council reduce the sewer usage rate by 50 cents per 1,000 gallons and increase the water rate by 38 cents per 1,000 gallons of water used for a net reduction of 12 cents per 1,000 gallons.

“For a typical residential customer that uses approximately 6,000 gallons of water per month, this means the typical residential bill will decrease about $3.06/quarter,” according to information provided to the council by utilities superintendent Brad Faust.

However, the readiness-to-serve charges that residents and businesses pay to cover the cost of maintaining the water and wastewater systems will increase and possibly lead to overall higher water and sewer bills. The readiness charge for wastewater usage will rise almost 70% from $7.26 to $12.32 per meter per quarter for customers with 1-inch or smaller meters, such as residences. The readiness charge for water usage will increase from $5.47 to $9.79 per meter per quarter for those same customers. That is an almost 79% increase.

The readiness-to-serve charges for customers with larger meters will increase at the same percentages.

“Operations and maintenance costs typically increase at an annual rate of 3-5% primarily due to increasing costs for personnel, contractual applications and operational supplies, which include electric power, treatment chemicals, meter costs, repair parts and maintenance activities,” the council’s agenda review form said. “The economy in early 2026 indicates ongoing challenges in our efforts to control and maintain these costs, but, as always, we will monitor the situation closely and respond accordingly.”

The changes are based on the rate study the city commissioned in 2025, city manager Brett Coker said.

“This recommendation’s proposal is needed to ensure that we continue to provide a safe and effective water and sewer delivery system,” Coker said.

Even with the changes, Tecumseh’s water and sewer rates compare favorably to nearby municipalities, according to information provided to the council. With the new usage rates and readiness fees, the average residential bills using 18,000 gallons of water per quarter will be:
• Tecumseh: $234.69.
• Saline: $488.84.
• Dundee: $341.38.
• Blissfield: $576.90.
• Manchester: $298.44.

In other business

During its meeting Monday, the Tecumseh City Council also:

• Accepted Coker’s recommended 2026-27 budget and set a public hearing on it for 7:35 p.m. May 4 during that evening’s council meeting. The budget keeps general fund expenditures the same as 2025-26 at $8,027,896. It calls for using $88,671 from the city’s reserve funds which is mostly to cover one-time payouts for saved-up leave time for long-serving employees who are retiring. Coker said it does not indicate a structural deficit concern. The proposed general millage rate for 2026-27 is 13.825 mills, which is about 0.06 mill less than in 2025-26.

• Heard a report from Coker that city clerk Tonya Miller has been participating in the development of standards through the U.S. Alliance for Election Excellence and the city received “exemplary” scores in both the “Funding and Budgets” and “Voter Registration Rolls” categories. Miller and city staff have also developed standard operating procedures to continue at that level in case she is ever absent. Miller’s next goal is for Tecumseh to become a certified jurisdiction in at least one area of each of the U.S. Alliance for Election Excellence’s six categories.

• Heard from Coker that the installation of new residential water meters is 84% complete, and city crews have replaced 73 of the 11 “larger” meters in the city.

• Voted 7-0 to approve having Consumers Energy install a new gas line to the city’s water well No. 12/14 for a new standby generator. This is the city’s largest water supply well. The gas line will connect to the gas main along Kaiser Road, which is just north of the city’s property. Easements have already been secured, Coker said. The cost to install the line is estimated at $15,072.86.

• Voted 7-0 to appoint Susan Billmaier to the planning commission for a term that will run from June 1, 2026, to May 31, 2029.

• Voted 7-0 to approve Ididit’s annual car show and the closure of South Maumee Street between Mohawk Street and East Russell Road. The car show will be Aug. 22.

• Voted 7-0 approve the special event application for the Kelly Carter & Thomas Leffler Memorial Scholarship 5K and Fun Walk on Oct. 10. No streets will be closed, but police assistance is requested.