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ALPENA — The Alpena Municipal Council voted 5-0 to accept a recommendation from the Alpena Compensation Committee to not accept raises for the next two years.

In its report, the committee said the discussion about the ongoing litigation between Alpena and Alpena Township over water and sewer rates was not a factor, but the committee made clear in its report that it is not pleased by the lack of progress with the case.

For the next two years, the mayor will earn $8,000 a year and other council members will receive $6,000 for serving the city.

In its report, the committee said members discussed uncertainty about a new mayor — current Mayor Matt Waligora is stepping down at the end of the year — and the litigation. Ultimately, the committee determined the current pay scale remains above comparable cities, so no rate hikes were needed now.

In its report, the committee told the council that the water and sewer issue was discussed and committee members feel a resolution needs to be found.

“We did discuss disappointment and frustration with the lack of a solution to the water and sewer issue,” the report says. “We even considered dropping compensation to zero until that issue has been resolved. It has been a decade of uncertainty and it has cost taxpayers a lot of money.”

The litigation over water rates the city charges the township has been ongoing since 2014. The township buys water and sewer services from the city to provide to its residents. The township has refused to pay rate increases to the city, arguing the city should treat the township as a wholesale customer because of the volume of water the township purchases.

Compensation Committee member Jackie Krawczak said the water issue was not the determining factor in recommending no raises. She said it is not up to the committee to determine the rate of pay or judge performance, just to compare how the salaries compare to other communities.

But, she said, issues and other scenarios are discussed and shared with the council as a way to let them know what they are doing well and what needs to improve or change.

“It is not our job to judge their performance,” Krawczak said. “That is the job of the voters. But this is one of those things we did talk about and had strong opinions about. People are upset about this.”

Over the last few years, Alpena and Alpena Township officials have worked together with the goal of establishing a new authority that would oversee water and sewer operations for both governments. The two sides reached a draft agreement on a water and sewer authority early in 2022. However, in July, the plan to establish the authority fell apart, setting the stage for a trial slated for April, according to the township’s most recent audit.

In 2017, the Alpena County Circuit Court ordered the two sides into mediation. That lasted only one day, however, as city officials didn’t see enough progress being made to continue.

A settlement appeared likely early in 2018, however, when both governing boards voted to approve “principle terms” for an agreement. That vote wasn’t for a deal on rates, but on seeking a process for establishing rates that could end the dispute.

After continuing negotiations failed to yield a deal, the local court essentially ordered the two sides to adhere to the “principle terms” they’d reached earlier in the year.

Shortly after, the township appealed a portion of that ruling to the Michigan Court of Appeals, and the city filed a cross-appeal. The appellate court also ordered mediation, which again yielded no agreement.

The appeals court then ruled that the proposed agreement being considered earlier was non-binding, which the township appealed to the state Supreme Court, which denied to hear the case, and sent it back to the circuit court in Alpena.