FAQs • Grand Ledge, MI • CivicEngage

Don't my property taxes pay for water costs?: For every $1 paid toward property taxes, the City of Grand Ledge receives approximately 24 cents if the taxpayer lives in the City or approximately 17 cents if the taxpayer owns property in the City. The balance of taxes paid are appropriated to other entities. The tax allocation could not support a user based utility such as the City’s water and wastewater that has operational costs and user fees dependent on use. The vast majority of municipalities charge customers fixed and variable rate water/wastewater fees to cover costs associated with adequately operating water and wastewater utilities.

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Utilities - Water Costs

1. Does the City of Grand Ledge make money from paid water bills?: As a public water provider, the City of Grand Ledge can only charge customers for the costs associated with providing water service, which means it cannot earn a profit. The City provides water and wastewater collection for more than 3,756 customers across approximately 4 square miles.

2. Why does the City charge so much for water?: The City of Grand Ledge is dedicated to setting water and wastewater rates that treat customers fairly and reflect the true cost of service while protecting the City’s financial stability. Recent water and wastewater rate increases reflect the necessary adjustments needed to ensure the City provides the operation and maintenance required for the water and wastewater systems. Adequate funding levels are critical to the delivery of a safe and reliable supply of water.

3. Don't my property taxes pay for water costs?: For every $1 paid toward property taxes, the City of Grand Ledge receives approximately 24 cents if the taxpayer lives in the City or approximately 17 cents if the taxpayer owns property in the City. The balance of taxes paid are appropriated to other entities. The tax allocation could not support a user based utility such as the City’s water and wastewater that has operational costs and user fees dependent on use. The vast majority of municipalities charge customers fixed and variable rate water/wastewater fees to cover costs associated with adequately operating water and wastewater utilities.