SHELBY - With four of the seven council members present at Monday evening’s regular council meeting, the Shelby Village Council gave authorization to raise village water and sewer rates effective March 1, 2026. Voting in favor of the resolution were Council Members Curt Trott, Steve Crothers, Mike Termer and Village President John Sutton. Councilors Samantha Gottschalk, Crystal Heykoop and Dan Zaverl were absent.
According to Village Administrator Phil Morse, the new rate increases will generate approximately $75,000 annually for the village’s Sewer Fund and approximately $65,000 annually for the village’s Water Fund. The proposed rate increases came about as the result of an extensive study performed in November by the Michigan Rural Water Association (MRWA). The results of that study were discussed in detail at a community forum Thursday, Jan. 29. (See the Feb. 6 edition of The Oceana Echo for more details.)
For customers who average 6.7 units per month, rates will increase by approximately 15 percent. The increase is calculated to be about $13 more per month, or $160 per year for the average customer.
“The main message from the MRWA was we’re doing ok, but when the repairs come all at once, we won’t have enough,” Morse explained. “In 2026, the South Michigan and Bennett Street project will cost $450,000 alone.”
Knowing they needed to get ready, the village began implementing a three percent cost of living increase to rates about five years ago. If they hadn’t, the village would be looking at a 35 percent increase now, Morse said.
“We can’t get out of the improvements and maintenance that will be coming,” Trott, chairman of the Water and Sanitation Committee, said. “EGLE dictates (a lot of) what we have to do.”
MRWA analysis outlined the following key actions going forward: adjust water and sewer rates per the proposed schedule; implement a three percent rate increase in FY 2027-28, with a full rate re-evaluation in November 2027 for FY 2028-29; update REU (Residency Equivalency Unit) assignments to accurately reflect the actual number of units within each building and ensure consistent billing; identify all accounts not currently assessed a Ready-to-Serve (RTS) fee and begin applying the appropriate charges; and incorporate the existing environmental charge into the RTS rate.
In other business, Morse provided an overview of the village’s FY 26-27 budget. The presentation detailed how village tax revenues have been trending upwards, due in part to more housing within the village. His projection of $455,000 in property taxes for the coming fiscal year is up from $280,000 just 10 years ago. Among other highlights, Morse noted the village’s Equipment Fund has had more expenditures than revenue, requiring the village to transfer funds into that account. The village is not proposing any big expenditures in the near future, however, he said the village will need to get creative and figure out how they can increase revenue in that fund. A public hearing and vote on the 26-27 budget is scheduled for Monday, Feb. 23 at the village hall. Copies of the proposed budget and documentation are available in the village office and at shelbyvillage.com.
The council also authorized the repair of the DPW’s 2021 plow truck in the amount of $7,345.35 and allowed the village administrator to approve time-sensitive plow truck repairs if necessary, with the caveat that competitive quotes would be obtained if possible. The plow truck was incapacitated when it sustained a broken rear leaf spring last week and had to be towed to West Michigan International in Muskegon. Due to the more urgent nature of this repair and the lack of service providers, only the one quote was sought. Prior to the approval, Morse said, “Equipment gets beat up. It’s the nature of the work, but Jer (DPW Supervisor Jeremiah Helenhouse) believes $7,300 is reasonable.”
Morse added the village is fortunate there has been a break in the weather this past week and noted that not having this truck available could have been devastating in a major weather event.
Trott added, “It’s more than likely related to the cold. Cold makes metal brittle. The sander is heavy, and with it bouncing around, it probably broke the spring.”
Two housekeeping resolutions were approved as well. Having completed her 90-day probation, the village’s Administrative Assistant Lynnea Lamberg will be added as a checkbook signatory on the village’s bank accounts, and Village Clerk/Treasurer Mireya Diaz was approved as the Enterprise Administrator for the village’s BS&A software.
Lastly, the council approved the addition of two more streets to the village street inventory, an additional section of Aspen Hill Drive and Stonecrest Drive. The additional 1,200 feet for the village will increase the annual amount of maintenance funding by $3,000 coming from MDOT’s Transportation Fund.
