Flint, Michigan – The City of Flint is acting proactively by suggesting the creation of a Water Rate Stabilization Fund in order to reduce the financial strain on its people caused by increasing water costs. Should the City Council adopt this plan, it would transfer $2 million from American Rescue Plan Act (ARPA) money to assist Flint homes’ water cost stability.
The proposal is in response to an announced 5.9% rate rise for the next fiscal year from Flint’s water source, the Great Lakes Water Authority (GLWA). Local officials and residents have been increasingly concerned about the provisions of the 30-year GLWA contract, which many consider limiting and detrimental to the financial independence of the city since 2017.
Seamus Bannon, Chief Strategy Officer for the City of Flint, emphasized the city’s commitment to its residents.
“For years, Flint residents have faced significant challenges, and the City is committed to providing relief wherever possible,” said Seamus Bannon, Chief Strategy Officer. “This Water Rate Stabilization Fund is a vital step to ensure access to water remains affordable and is not jeopardized by external cost increases.”
Many consider the creation of the fund as a vital step to offset the rising GLWA charges and to guarantee Flint citizens do not suffer the most from these hikes. Though with continuous water authority increases, the city has been actively trying to normalize water rates since 2015; urgent action has been required to preserve affordability.
Flint’s plan to control its water expenses via the suggested fund shows a more general effort to protect its residents from increasing living expenses and to improve the city’s capacity to run its utilities in a financially responsible way.
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The City Council now has to decide; it will have to authorize the Water Rate Stabilization Fund’s official creation by reallocating money. Should it pass, this proposal may offer notable comfort to Flint homes currently under high water bills and financial constraints.