Matt Hallett, the water and sewer coordinator for the Madison Heights Department of Public Services, shows some water meters and pipes used for municipal and residential water line repairs. Officials say cost increases in water and sewer — passed along by the city’s service providers — are putting a strain on the city’s budget for infrastructure.
By: Andy Kozlowski | Madison-Park News | Published March 19, 2026
MADISON HEIGHTS/HAZEL PARK — Water and sewer rates are increasing in the cities of Madison Heights and Hazel Park, due to what officials say are cost hikes passed along by the Great Lakes Water Authority and the Oakland County water resources commissioner’s office.
The GLWA delivers drinking water while the county handles wastewater disposal and treatment.
The Madison Heights City Council approved the rate change, reluctantly but unanimously, at its meeting March 9. Council members previously passed a resolution decrying the new rates from service providers.
While the budget for fiscal year 2026-27 won’t be adopted until May, officials wanted to finalize the adjustment now so that there would be more time to notify the public before the new rates go into effect.
In Madison Heights, the changes include a 5.7% increase for water ($5.01 per unit, up from $4.74), and a 4.74% increase for wastewater ($7.29 per unit, up from $6.96). One unit equals 748 gallons of water.
The average combined water and sewer bill is now expected to be about $148 for residents, up from around $140, a roughly 5.1% increase. This is less than 2 cents per gallon. Officials say Madison Heights still has among the more affordable rates in the region.
The change will take effect for bills issued on or after July 1, 2026. That bill will reflect usage from April to June for residents, and mid-May to mid-June for businesses.
In Hazel Park, the water and sewer portion of the proposed budget is still being developed, so the exact numbers weren’t available at press time.
“We are anticipating an increase of some sort,” said Timothy Young, the supervisor for the Hazel Park Water Department. “But at this point, we still don’t have enough data to say how much of an increase we will see.”
The costs influence how a city budgets. In Madison Heights, water wholesale costs are expected to rise 5.8% (roughly $3 million), while its sewage costs are expected to increase 4.26% (about $5.4 million). This comes at a time when the city aims to complete sectional water main replacements on roads such as Hampden Street, Shirley Avenue, Rose Street, Hales Street and Hecht Drive, an undertaking that will cost more than $2 million.
For the 2026-27 fiscal year that starts July 1, the proposed water and sewer fund for Madison Heights is about $15.3 million, which is about $132,000 lower than the amended total for the current fiscal year. The water and sewer budget also uses about $162,000 in cash from the city’s fund balance. The fund balance is expected to be about $5.5 million at the end of the current fiscal year.
The challenge, officials say, has been to balance necessary infrastructure spending with unavoidable cost increases caused by forces beyond the city’s control. The cost increases from the GLWA and Oakland County for water and sewer also strain the city’s own finances.
“Keep in mind, we do have the very important task of keeping our infrastructure updated,” said Madison Heights Mayor Corey Haines, after the council meeting. “Moving forward, we want to continue updating our water lines at the same time we’re removing major portions of roadway during projects on our main roads and local roads. Doing both at the same time saves money versus doing one first and the other later.
“I also want citizens to know that we did the best we could in partnering with other cities to put out the resolution attempting to keep (the GLWA) and Oakland County from increasing rates,” Haines said. “We know our residents are already paying a lot in taxes, especially those who are on fixed incomes. Although the increase may just be a few dollars, we know that for many households, they’re counting every dollar, and with any increase, they give up things.
“So, I’m very disappointed that (the GLWA and the Water Resources Commission) increased rates, but at the same time, we need to have water provided to our citizens,” he said. “We’re forced into this situation because we don’t have any other options.”
Madison Heights City Councilmember Sean Fleming also lamented the rate increase.
“If they’re going to do this, I want to at least see more investment dollars into their water delivery services in our community,” Fleming said. “With the increase in costs, I would hope they’re going to at least improve their aging infrastructure. But I don’t really know what these cost increases are going to accomplish, or whether it’s going to make a difference.”
Ed Klobucher, the city manager of Hazel Park, said the increases need to be justified.
“We want to make sure from a municipal standpoint that these charges are appropriate, because any increases are obviously a burden on our residents,” Klobucher said. “So, when we see significant increases, we want to make sure the rationale is clearly explained, and that there weren’t any alternatives they could have done to avoid those increases.”
When asked for comment, a representative for the GLWA provided a statement by the group’s chief executive officer, Suzanne Coffey.
“Budget and charge increases are never implemented lightly. However, our regional system is at an inflection point,” Coffey stated. “Aging infrastructure is deteriorating faster than it can be replaced under the current funding model, while impacts and operational demands continue to rise. Our responsibility is striking the right balance — protecting affordability for the communities we serve while making the investments necessary to ensure long-term reliability, public health and system resilience.”
Oakland County Water Resources Commissioner Jim Nash explained in an email that Oakland County receives sewer treatment services from the GLWA as a wholesale customer, and the rates approved by the GLWA board are passed onto its communities. Nash said that the Water Resources Commission does not set regional treatment rates but rather allocates the wholesale charges to member communities based on system usage and other cost-sharing formulas.
Nash said the difference is largely due to changes in water usage patterns, with the city of Madison Heights increasing its usage, for example, while usage in several neighboring communities declined. He added that while any rate increase is challenging, continued investment in water and sewer infrastructure is necessary to ensure reliable service.
“Just like maintaining a car, you have to invest in the system over time to keep it running reliably,” Nash said. “Working with the (GLWA) and our local partners, it is important to make the long-term investments needed to maintain and improve the regional systems that millions of residents rely on every day.”
Both Fleming and Haines encouraged residents to seek assistance paying bills, if needed.
“I strongly encourage people to consider WRAP,” said Haines, referring to the Water and Residential Assistance Program, offered by the GLWA, online at glwater.org/assistance or by calling (248) 983-5656.
Ratepayers can also seek assistance with utility payments through Call 2-1-1, by dialing 211 or (844) 975-9211. The Finance Department at Madison Heights City Hall, 360 W. 13 Mile Road, can also assist.
“There are programs that can help,” Haines said. “But we on the City Council are still doing the best we can to keep our rates as low as possible while balancing the budget to improve our infrastructure.”