Explanation and Effective Date of Utility Bill Increase

August 8, 2024

The City of Bessemer has secured 50% grant funding to build a new water reservoir that will meet Michigan’s standards set forth by EGLE (Environment, Great Lakes, and Energy) and replace the water main connected to it. This project is important to ensure that the residents of Bessemer continue to receive safe, clean water for many generations to come. We expect construction to start late Fall of 2024 and continue through Summer 2025.

By completing the new reservoir, we can ensure that our water reservoir tank will be safe, secure, functional, and meet all the requirements set forth by EGLE. The City is taking the opportunity to complete this project when it is being partially funded by a State of Michigan grant, before it becomes an immediate requirement that gets paid completely by the City at a much higher cost. As a result of this project and the other 50% of funding being taken out as bonds, the City of Bessemer has adjusted water rates, and they will be effective September 1st, 2024.

Since these rates are effective September 1st, that means you will see this change on your next billing cycle that comes out October 1st for commercial users and November 1st for residential customers:

**Residential water readiness to serve charges will go from $76 every two months to $84 every two months (an increase of $8 per billing cycle)

**Commercial water readiness to serve charges will go from $38 every month to $42 every month.

**The usage charge will go from $7.30 per 1,000 gallons to $7.52 per 1,000 gallons (an increase of $1.10 per billing cycle if your average usage is 5,000 gallons).

There will be a later rate adjustment July 1st, 2025:

**Residential water readiness to serve charges will go from $84 ever two months to $92 every two months.

**Commercial water readiness to serve charges will go from $42 every month to $46 every month.

**The usage charge will go from $7.52 per 1,000 gallons to $7.74 per 1,000 gallons.