City Sewer and Water Connections Charges
City of Ann Arbor Sewer and Water
Connection Charges
Official Policy
September 21, 2004
While a complete elimination of the sewer charge for a fire protection tap would seemingly be in order to address projects immediately facing inequities, the Ann Arbor Area Chamber of Commerce strongly encourages the Ann Arbor City Council to fully review all of the sewer and water connection charges that went into effect March 1
st, 2004. Consideration of the ordinance amendment before the Council is strong evidence that the rate increases imposed did not have the benefit of input and scrutiny from the development community and is based upon an uncertain and questionable logic regarding water utilized in providing fire protection.
The dramatic increase in the number and amount of these charges will have a chilling effect on positive development and will have an adverse effect on economic growth. While city staff has recommended that City Council reduce the sewer connection charge for a dedicated fire line, this is only a small part of the problem. A more thorough review of the effect of all sewer and water connection charges is critical.
In addition, if, as the City has expressed, these fee increases are being implemented to address future infrastructure problems, then the additional funds collected should be set aside to do just that.
Well-maintained and adequately funded infrastructure is crucial to the success of the entire Ann Arbor community, and we commend the City for thinking about the long-term needs of the sewer and water system. However, the Chamber is concerned that too much of the burden of maintaining this infrastructure is falling on new development via increased fees. As of March 1st, 2004, the cost to tap into the Ann Arbor sewer and water system went up 100% or more for all tap sizes. Many developments are now required to provide a separate fire line and therefore pay the increased fees twice. If infrastructure needs are significant enough that fees have to be doubled and new fees added, City Council must consider spreading the cost to all the users of the system. Doing otherwise jeopardizes the future economic growth of the Ann Arbor area.
