Title
Public Hearings on the Proposed FY 2026 & FY 2027 Biennial Budget Request
Body
Agenda of: December 11, 2024
Item No.: 2024-413
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: December 11, 2024
RE: Public Hearings on the Proposed FY 2026 & FY 2027 Biennial Budget Request
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), authorizes staff to schedule a Public Hearing on the Proposed FY 2026 & FY 2027 Biennial Budget Request to be held at a Meeting of the Great Lakes Water Authority Board on February 26, 2025, at 2 pm, directs that notice of this Public Hearing be published in a daily newspaper of general circulation, and directs that notice of this Public Hearing be mailed to GLWA member partner communities on or before January 27, 2025; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The timing of the proposed public hearings is guided largely by contractual commitments that seek to align the budget and annual service charges approval process as well as following general practice in the public sector.
Contractual Commitments
Section 7.02 of the GLWA Model Water Contract requires a Public Hearing prior to adoption of the FY 2026 & FY 2027 Biennial Budget. Section 7.02 provides:
“Notification of Rates. As soon as possible in the ratemaking process, the Board shall provide information on proposed rates and the draft data and information used in the calculation of proposed rates in a format that will enable Customer to assist in the ratemaking process. Not less than thirty calendar days prior to the hearing required by Act 279, the Board shall provide Customer with written notice of a proposed rate and the underlying data used to calculate the rate. The Board shall meet with Customer to review the rate and the data.”
The GLWA Model Sewer contract has the similar wording in Section 20.02 of that contract.
“Notification of Rates. As soon as possible in the ratemaking process, DWSD [now GLWA] shall provide information on proposed rates and the draft data and information used in the calculation of proposed rates in a format that will enable Customer to assist in the ratemaking process. Not less than thirty calendar days prior to the hearing required by Act 279, DWSD [now GLWA] shall provide Customer with written notice of a proposed rate and the underlying data used to calculate the rate. DWSD [now GLWA] shall meet with Customer to review the rate and the data.” [Note that the contracts still reference DWSD; italics noted to infer GLWA.]
General Practice in the Public Sector
Michigan Public Act 279 provides that a water or sewerage system which serves more than 40% of the population must hold at least one public hearing at least 120 days before a proposed rate increase is scheduled to take effect. The hearing(s) must be conducted in compliance with the Open Meetings Act (OMA). Notice of the time, date and place of each hearing must be in compliance with the OMA and must be mailed to each city, village or township served by the system not less than 30 days before each hearing.
Although Act 279 does not currently apply to GLWA operations as the population served is close to, but less than, 40%, counsel has been in agreement that GLWA should continue to abide by the notice requirements of Act 279 as the most faithful interpretation of the contract requirements.
JUSTIFICATION
The timing of the proposed public hearing aligns with the annual financial planning and charge development cycle in process.
BUDGET IMPACT
A public hearing on the Proposed FY 2026 & FY 2027 Biennial Budget Request is necessary for the establishment of a budget effective July 1, 2025.
COMMITTEE REVIEW
A discussion draft budget will be presented to the Audit Committee on December 20, 2024, with further discussion scheduled for the Board of Directors meeting on January 22, 2025, and the Audit Committee meeting on January 24, 2025 as needed.
At its meeting on December 6, 2024, the Audit Committee unanimously recommended that the Board of Directors authorizes staff to schedule a Public Hearing on the Proposed FY 2026 & FY 2027 Biennial Budget Request to be held at a Meeting of the Great Lakes Water Authority Board on February 26, 2025, at 2 pm, directs that notice of this Public Hearing be published in a daily newspaper of general circulation, and directs that notice of this Public Hearing be mailed to GLWA member partner communities on or before January 27, 2025.