Flint may utilize $2M in federal funds for water

Flint, Michigan, is considering using $2 million in federal stimulus funds to help cover increased water rates set to start in July. The Great Lakes Water Authority (GLWA) announced a 5.9% increase in the price of wholesale water. Mayor Sheldon Neeley has asked the City Council to approve a plan to move American Rescue Plan Act (ARPA) funds into a water rate stabilization fund. This fund would help offset the upcoming water rate increase for residents and businesses in Flint. Despite the projected increase, Neeley’s proposed budget for 2025-2026 did not account for this rise in water costs, which will take effect in less than four months. Flint has been buying treated water from GLWA since 2015 and has not raised local water rates, even as GLWA's prices have gone up. Neeley warned that if the council does not approve the necessary adjustments, residents could face future rate increases. The Finance Committee will discuss the water fund transfer on March 19. Committee Chair Judy Priestly has indicated she needs more details before making any comments. The mayor's administration stated that the fund transfer would help protect customers from immediate water bill hikes, especially for those in vulnerable situations. Flint has previously used ARPA funds for water affordability initiatives, including issuing credits on water bills to help prevent shutoffs. The city received nearly $95 million in ARPA funds and has since obligated a portion for revenue replacement. The Finance Committee will also consider additional reallocations for various local programs during the meeting on Wednesday.