Novi residents will pay about $72 more per year for water and sewer service starting in August, after the City Council approved new utility rates at its July 13 meeting.

A typical household using 20,000 gallons per quarter will see its bill rise from $280.40 to $298.44, an increase of $18.04 per quarter, according to the city's Finance Department rate packet. The 6.4% combined increase is the largest Novi water and sewer users have faced in at least a decade.

The new rates take effect for all bills rendered after August 1, 2026.

The water variable rate rises 9% and the sewer variable rate 9.5%, driven largely by wholesale cost increases from the Great Lakes Water Authority and the Oakland County Water Resources Commissioner. The rate hike is projected to generate $1.2 million in cash toward $5.1 million in budgeted capital projects for the water and sewer system in fiscal year 2026-27.

The city's Water and Sewer Fund balance is projected to drop from approximately $19 million to $3.7 million by June 30, 2027, after planned capital spending. The city plans to issue a request for proposals for a comprehensive rate study this fiscal year to evaluate long-term sustainability.

Budget cuts 10 positions

The council also approved Budget Amendment #2027-1, which eliminates 10 full-time equivalent positions from the General Fund and increases the fund balance by $1,108,183.

The largest personnel savings come from the Police Department ($588,553), Community Development-Planning ($241,092), Community Development-Building ($126,196), the Fire Department ($120,000), and DPW-Engineering ($112,805). The amendment also adds $117,321 in anticipated property tax revenue and $326,105 in capital outlay for DPW vehicles.

After the amendment, the General Fund's budgeted revenues exceed expenditures by $1,348,544, with the fund balance projected at 31% of expenditures, or $14.6 million. City Manager Cardenas outlined the position eliminations as part of a multi-year cost-reduction plan at the council's June 22 meeting.

Landscape ordinance postponed

A first reading of Text Amendment 18.307, a comprehensive overhaul of Novi's landscape standards, was postponed to allow staff to make updates requested by council members, according to the city's official Facebook summary posted Thursday, July 17.

The proposed revision, prepared by city Landscape Architect Rick Meader, would create new standards for urban multifamily housing, add green development incentives, increase parking lot landscaping requirements for industrial sites, and allow administrative landscape waivers. The Novi Planning Commission recommended approval after a public hearing on Wednesday, June 10.

Other actions

The full council was present: Mayor Fischer, Mayor Pro Tem Casey, and Council Members Gurumurthy, Heintz, Martinez, Smith, and Staudt. The council also approved a $134,439 vehicle-tracking system from Samsara Inc. and an emergency water interconnection agreement with the City of Northville to provide a secondary supply source at Taft Road.

Individual vote tallies have not been published; official minutes for the July 13 meeting are pending. Residents can check the meeting calendar and agenda documents at cityofnovi.org.