Approximately 85% of the City’s total cost from the GLWA and Macomb Public Works is now fixed, or not tied to actual usage. To reflect this rate structure, Sterling Heights passes on only a small portion or 7.5% of these fixed fees to its customers.
A fixed component helps to prevent revenue shortfalls and avoids significant rate increases, which can further reduce usage. A fixed component also helps the system break-even and when sales increase, the City will not be overcharging its customers.
In order to lessen the fixed charge impact to the average residential customer, the City lowered its first tier water rate (where most residential consumption is used), thereby lowering the average water bill increase.
The consumption amount for the minimum bill also decreased from 1,000 cubic feet to 900 cubic feet to lessen the fixed fee impact to very low users.