Politics
Lansing City Council Approves FY2027 Budget Ordinance with Utility Rate Adjustments Effective January 2027
Lansing households will receive updated water and sewer bills reflecting the new rates beginning with the January 2027 billing cycle, while road repair projects funded in the budget start in October 2026.
How we reported this
The Lansing City Council on July 7 approved the fiscal year 2027 budget ordinance by a 6-3 vote, adopting a total general fund of 148 million dollars that includes a 4.2 percent increase in water and sewer rates phased in over two years.
The measure addresses a projected 9 million dollar shortfall in the utilities enterprise fund documented in the city's May 2026 financial report, with revenue directed to maintenance of aging pipes in the downtown and Old Town districts.
Changes to Resident Utility Bills and Service Delivery
Under the ordinance, single-family homes using 5,000 gallons monthly will see an average increase of 3 dollars and 80 cents on combined water and sewer charges starting January 2027, followed by an additional 2 dollars and 15 cents in January 2028. City records list 42,300 residential accounts that will receive the first adjusted statements in the new year.
The budget also allocates 7.8 million dollars for street resurfacing on 14 miles of local roads, with contracts scheduled for award in September 2026 and work crews expected on site by mid-October in neighborhoods including REO Town and Westside.
Next Steps and Rollout Schedule
City staff will mail rate notices to all utility customers by November 15, 2026, and the public works department will publish the list of targeted road segments on the municipal website in August. The ordinance requires quarterly progress reports to the council beginning in January 2027.
Property tax statements mailed in December 2026 will remain unchanged, as the rate adjustments apply only to the utilities portion of city services rather than the general levy.