Title
Resolution Adopting the FY 2026 & FY 2027 Biennial Budget
Body
Agenda of: February 26, 2025
Item No.: 2025-019
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: February 26, 2025
RE: Resolution Adopting the FY 2026 & FY 2027 Biennial Budget
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA):
1) Concludes the Public Hearing related to the FY 2026 and FY 2027 Biennial Budget held on February 26, 2025;
2) Pending public comment, adopts the attached resolution, 2025-019, adopting the FY 2026 and FY 2027 Biennial Budget for the GLWA;
3) Notes that the GLWA By-Laws Article X, Section 5, requires a super-majority affirmative vote of at least five (5) members of the Board is necessary for the approval of the operating budget; and
4) Authorizes the Chief Executive Officer to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The Great Lakes Water Authority (“GLWA” or the “Authority”) assumed the operation of the Regional Water and Sewer systems on January 1, 2016 (the “Effective Date”) pursuant to the Lease Agreements between the GLWA and the City of Detroit dated June 12, 2015. Section 5.6 of the Lease Agreements require the Authority to adopt a two-year budget for the Regional Water and Sewer Systems that sets forth budgeted revenues and expenses for each such Fiscal Year.
JUSTIFICATION
Establishing the budget and charges each year is an impactful decision which merits public discussion that spans several months and encompasses stakeholder groups. A summary of discussions related to the FY 2026 & FY 2027 Biennial Budget and FY 2026 Charges is provided below.
Board of Directors Public Engagement
ü October 9, 2024 - Board Workshop - In-Depth Budget & Charges Briefing
ü January 6, 2025 - Audit Committee receives proposed budget and charges presentation
ü January 22, 2025 - Board Meeting - Board receives a proposed budget and charges presentation and refers the matters back to Audit Committee for further review
ü February 17, 2025 - Audit Committee continued review of budget and proposed charges
ü February 26, 2025 - Board Meeting - Board conducts public hearing related to the proposed budget and charges
Member Partner Engagement
ü October 17, 2024 - Charges Rollout #1 - Capital Improvement Plan (CIP) Review
ü November 12, 2024 - Charges Rollout #2 - Units of Service (UOS)
ü January 9, 2025 - Charges Rollout #3 - Proposed Charges Overview and Introduction of Budget
ü January 13, 2025 - Member Partner specific email with preliminary calculation worksheet and letter from Chief Executive Officer
ü January 16, 2025 - Charges Rollout #4 - Feedback on Proposed Charges and further discussion of the Budget with the Long-term Financial Plan
ü January 27, 2025 - Member Partner specific email with proposed calculation worksheet, letter from Chief Executive Officer, and one pager related to FY 2026 Proposed Charge Increase
A Notice of Public Hearing was published in the Detroit Legal News on February 12, 2025. That notice, along with related supporting materials throughout the budget and charges development process, is available online at www.glwater.org/financials.
BUDGET IMPACT
This action establishes a budget for FY 2026 and FY 2027.
COMMITTEE REVIEW
The GLWA Audit Committee reviewed the budget and supplemental analysis at the meetings noted above at its meetings on January 6, 2025 and February 17, 2025.