News File Photo The Alpena water tower is seen in this November 2018 photo.

ALPENA — Water rates for customers in Alpena are going to go up, but not by as much as water officials originally proposed.

After listening to a recommendation from city staff to raise water and sewer rates by 10% to cover increasing costs and facility needs, the Alpena Municipal Council on Tuesday voted to raise fees by half that amount.

The increase is expected to generate about $1.5 million in revenue in fiscal year 2020-21, but that could be more if Alpena Township were to pay the same rate as other customers, officials said.

The city and township have been in litigation for years over water rates the township believe are excessive. Township officials believe they should be treated as wholesale customers because of the amount the township buys for its residents.

Mayor Matt Waligora said the council doesn’t like to raise rates of any type, but increases are a necessary even to keep the system running smoothly and offering quality services like odor control and filtration for per- and poly-fluoroalkyl substances, or PFAS.

“Council certainly understands the necessity for having enough annual revenue to make capital improvements and required upgrades, but we also agreed that this is not the time to have such a substantial increase in water and sewer rates,” Waligora said. “We have always tried to keep any increases to a manageable amount.”

Mayor Pro-Tempore Cindy Johnson had the same opinion. She said now is not the time for a 10% increase, but increases are needed to cover escalating operating costs.

“I understand the need to keep our facilities and distribution system functioning, clean water and the ability to process waste is essential,” she said. “But a 10% increase was a little more than I think we can ask of our residents, even in good times, but especially right now.”

Since mid-March, when business closures meant to prevent the spread of the coronavirus first went into effect, unemployment filings in Alpena County have increased by about 500%, according to the U.S. Department of Labor.

Councilman Mike Nowak was the first to question the size of the proposed increase at the council’s May 5 meeting. He said he knows a 5% increase will tighten the water and sewer budget lines, but Nowak said the city needs to be responsible with funds.

“I still think we need to be ahead of the curve for capital improvement projects, but we also have to live within means with the money citizens are entrusting us with,” Nowak said. “Costs are going up, but I think right now, 5% is more palatable than 10%.”

Steve Schulwitz can be reached at 989-358-5689 at sschulwitz@thealpenanews.com. Follow him on Twitter @ss_alpenanews.com.