Title
Resolution Adopting the FY 2027 & FY 2028 Biennial Budget
Body
Agenda of: February 25, 2026
Item No.: 2026-070
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 25, 2026
RE: Resolution Adopting the FY 2027 & FY 2028 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 2027 and FY 2028 Biennial Budget held on February 25, 2026;
2) Pending public comment, adopts the attached resolution, 2026-070, adopting the FY 2027 and FY 2028 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) Authorize the GLWA Administration to report back with the “Schedule 10 - Flow of Funds and Debt Service Coverage Consistent with the Master Bond Ordinance” pending action by the Board of Water Commissioners for the Detroit Water & Sewerage Department; and
5) 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. An outline of discussions related to the FY 2027 & FY 2028 Biennial Budget and FY 2027 Charges is outlined below.
Board of Directors Public Engagement
ü October 8, 2025 - Board Workshop - In-Depth Budget & Charges Briefing
ü January 9, 2026 - Audit Committee receives proposed budget and charges presentation
ü January 28, 2026 - Board Meeting - Board receives a proposed budget and charges presentation and refers the matters back to Audit Committee for further review
ü January 30, 2026 - Audit Committee continued review of budget and proposed charges
ü February 13, 2026 - Audit Committee continued review of budget and proposed charges
ü February 24, 2026 - Audit Committee continued review of budget and proposed charges
ü February 25, 2026 - Board Meeting - Board conducts public hearing related to the proposed budget and charges
Member Partner Engagement Meetings
ü November 6, 2025 - Charges 101 - Foundational Knowledge of the GLWA Charge-Making Process
ü November 13, 2025 - Charges Rollout #1 and #2 - Capital Improvement Plan (CIP) and Units of Service (UOS) Update
ü January 14, 2026 - Member Partner specific email with preliminary calculation worksheet and letter from Chief Executive Officer
ü January 15, 2026 - Charges Rollout #3 - Proposed FY 2027 Revenue Requirement and Service Charges
ü January 22, 2026 - Charges Rollout #4 - Feedback on Proposed Charges and FY 2027 Revenue Requirement
A Notice of Public Hearing was published in the Detroit Legal News on February 10, 2026. That notice, along with related supporting materials throughout the budget and charges development process, is available online at www.glwater.org/financials.
Coordination with DWSD Budget
In accordance with the terms of the lease agreements, there is required coordination in establishing inputs for the budget and charges for both entities. This year, that information is not available at this time as DWSD is continuing to work through their budget. It is expected that a budget will be adopted that will reflect all contractual commitments as GLWA and DWSD financial teams collaborate regularly on the amounts and underlying calculations. For this reason, the GLWA administration sees this as an informational update that will be required for the final resolution of record. Accordingly, the proposed action by the Board of Directors is to authorize the GLWA Administration to revise, update, and report back the final schedule of charges pending receipt action by the Board of Water Commissioners for the Detroit Water & Sewerage Department.
BUDGET IMPACT
This action establishes a budget for FY 2027 and FY 2028.
COMMITTEE REVIEW
The GLWA Audit Committee reviewed the budget and supplemental analysis at the meetings noted above. As an outcome to those meetings, modifications were made to the FY 2027 charges with an emphasis on affordability concerns throughout the service area balanced with major capital needs. On February 24, 2026 the Audit Committee recommended that the Board of Directors adopts the resolution related to the FY 2027 and FY 2028 Budget reflecting a budget that aligns with a wholesale average system charge adjustments of no more than 5.8% for the water system and 4.27% for the sewer system subject to public comment at the public hearing to be held on February 25, 2026.