By James Windell
Dana Burd, Public Works Director, thought South Haven area residents just might have questions about their water and sewer rates. So, he held a public meeting at South Haven High School on Monday December 8, 2025.
Not only did the public as well as South Haven city officials turn out for this informational meeting, but they did have questions.
When they got an opportunity to ask questions, residents raised their concerns about high monthly bills, inconsistent charges among neighbors, and a lack of clarity on rate tables and meter sizing.
Going into the meeting, Burd said that he thought the meeting would be important because “It gives the public a chance to learn how the water and sewer system works, what goes into setting rates, and how to better understand the bills they receive.”
Burd began the meeting by talking about the infrastructure background and the development of the water and sewer system in South Haven, South Haven Township and Casco Township. He said that South Haven and surrounding townships have invested in water and sewer infrastructure since the late 1800s, with significant expansions in the late 20th and early 21st centuries. “Much of the water and sewer system is aging, requiring ongoing replacement and upgrades,” he told the audience.
Although the South Haven Area Water and Sewer Authority (SHAWSA) was originally formed in 1992, a new authority was established in 2016. This new SHAWSA facilitated collaborative management, common ownership, and cost-effectiveness across the region. The SHAWSA service area includes South Haven city and three townships, each with unique historical investments, asset bases, and customer distributions.
“SHAWSA is a separate public entity without its own staff,” Burd said, “and the City of South Haven provides operations, maintenance, billing, and administration.”
Burd said that there has been a significant amount of construction on the water and sewer system this year. He explained that he and the SHAWSA Board, through the informational meeting, wanted to give customers a better understanding of the rates and fees that fund system operations and ongoing investment. He adds that much of the approximately $42 million in current project work was required by the State of Michigan, and SHAWSA was fortunate to receive about $20 million in grants to help offset costs
In discussing rates, Burd said that rates are set to cover the cost of service, not to generate profit, but that “All investments, debts, and operational costs are paid by customers.”
He explained that significant prior and ongoing debts arise from large capital projects and compliance with state and federal mandates. However, he said that previous refinancing helped reduce system costs.
Burd said that water and sewer rates have seen steady increases due to mandatory system upgrades, with recent increases at 6.9% and 4.5% for water and sewer respectively. “Future increases are expected to trend with inflation after the current investment peak is over,” he added.
In trying to explain the charges that customers see on their bills, he said that fixed and variable charges appear on monthly bills. There are usage charges, ready-to-serve fees (higher if larger meter size), and additional township-specific debt recovery charges. While SHAWSA sets the rates for water and sewer services, SHAWSA uses a rate consultant for regular reviews and benchmarking, “aiming for stable, predictable costs and compliance with required debt coverage and cash reserves.”
He also explained that while the system has grown through new connections, that does help to offset some costs but typically new customers do not lead to dramatic decreases in the rates because of increasing investment needs.
In answering questions posed by residents, Burd and City Engineer, Mike Dopp, said that high ready-to-serve charges, especially for homes with larger meters (often installed for fire suppression), can double fixed costs. Some audience members said that they did not understand the size of meters and why different homes had different size meters. They did state that some home owners could potentially reduce their water bills by reducing the size of their meters.
Responding to customer questions and concerns, Burd and Dopp acknowledged challenges in comparing costs across communities and explained that more customers help offset, but not necessarily lower costs due to investment cycles. Also, questions about the fairness of high connection fees and the structure of fixed vs. usage-based charges led to discussion of national best practices and local constraints. Burd also said, in response to a question, that fluoride is used in the water.
Some residents suggested a need for more accessible, transparent rate tables and individualized review of billing discrepancies. Burd indicated that they would follow up personally with customers who raised questions at the meeting and that the SHAWSA website provided more information about rates and meters.
“The SHAWSA Board does hold public monthly meetings, similar to City Councils and Township Boards,” Burd said. “Each year, rates and fees are discussed and presented to the Board, including Cost of Service (rate) studies that take a comprehensive look at expenses, revenue, and debt to determine rate recommendations.”
For more information, visit shawsa.org.
