City of Kalamazoo - July 9, 2026 Utility Policy Committee Meeting

Updated about 11 hours ago

In the Utility Policy Committee Meeting, members discuss several ongoing utility projects, including water main expansions and lead line removals. The committee reviews the city's financial audit, highlighting a stable financial position and ongoing capital projects. They also discuss the water affordability program, which helps families in need with their water bills. The committee plans to review the capital improvement plan in the next meeting, and the discussion includes future rate setting and financial policies.

Chapters

Call to Order (00:00:51)
The Utility Policy Committee meeting was called to order.

The meeting of the Utility Policy Committee was officially called to order. Attendees were reminded to sign the sign-in sheet if they had not already done so.
Approval of Agenda (00:01:04)
The agenda was approved as presented without any changes.

A motion was made to approve the agenda as provided. The motion was seconded and all members present voted in favor. The agenda was accepted as presented.
Introductions and Guests (00:01:38)
Members and guests introduced themselves, including new participants.

Committee members and guests introduced themselves, including a new participant. Representatives from the city and regional commission, as well as staff members, were present. Online participants were also acknowledged.
Approval of Minutes (00:03:20)
The draft minutes were approved without any changes.

A motion was made to accept the draft minutes as presented. The motion was seconded and approved by all members present. The minutes were accepted without any amendments.
Public Comment (00:03:58)
No public comments were made during the meeting.

The floor was opened for public comments, both from attendees present and those online. There were no comments from the public at this time.
Director's Report (00:04:14)
Updates on city commission actions and capital projects were provided.

The director reported on recent city commission actions and provided updates on various capital projects. These included water main projects, service line replacements, and station improvements. The report highlighted the success of the optimized corrosion control program and ongoing efforts to reduce lead in the water system.
Finance and Audit Report (00:15:55)
The annual audit presentation focused on the water fund's financial health.

Aaron Stevens presented the city's annual audit, with a focus on the water fund. The discussion covered financial statements, liquidity, and debt service coverage ratios. Key financial metrics and trends were highlighted, indicating the fund's financial health and performance over recent years.
Unfinished Business - Utility Financial Policy Amendment (00:32:32)
Discussion on potential amendments to the utility financial policy to address current calculations and reserves. More analysis is needed.

The council discussed the status of the utility financial policy amendment, particularly concerning the water rates. Discussions with Peter and Stantec highlighted concerns over current calculations and the need for more clarity in the policy. It was decided to spend more time analyzing the policy, as it does not affect current rates but might influence future calculations. There is a need to specify terms like 'material non-cash accounting adjustments' to avoid ambiguity. The policy, established two years ago, requires more refinement before any potential changes are implemented.
New Business (00:36:00)
Discussion on scheduling and reviewing utility rates, with plans to discuss capital improvements and rate proposals for the upcoming year.

The council discussed the timeline for reviewing utility rates. They plan to kick off discussions in July, with a review of proposed rates with Stantec scheduled for September. The aim is to have a recommendation ready by October for consideration. Discussions will include capital improvements and their inclusion in rate development. The goal is to finalize rate recommendations for the city commission by December.
Professional Services Invoice Approval (00:40:00)
Approval of various professional services invoices, including Hefner Group and Prime & Newhoff, with motions and votes.

The council approved several professional services invoices. Member Chamberlain moved to approve the Hefner Group invoice, which was seconded and passed with a vote. Similarly, Prime & Newhoff's invoice was approved following a motion and second. These approvals were part of the routine financial oversight duties of the council.
Public Comments and Committee Member Remarks (00:43:00)
Discussion on public assistance programs for utility bills and remarks from committee members about ongoing projects and concerns.

Public comments included discussions on the water affordability program, which helps income-eligible families cover their water bills. This program has been effective in reducing water shutoffs. Committee members also discussed ongoing sewer work and capital projects, with updates provided on the completion of certain infrastructure projects. There was a general consensus on the effectiveness of current programs and the need to continue supporting them.