Understanding your utility bill
Water & sewer
rates, explained.
Your utility bill supports much more than the water you use each month. It helps keep treatment, pumping, pipes, staffing, maintenance, emergency response and long-term infrastructure available every day.
New Water & Sewer Rates Effective January 1, 2027
The Village of Holly is implementing an updated water and sewer rate structure established by Resolution 2026-041 to support reliable service, aging infrastructure, long-term improvements, and equitable cost allocation.
What's on my water and sewer bill?
Fixed Monthly Co​mponent
Readiness-to-Serve Charge
Covers keeping the system available, including treatment, pumping, pipes, maintenance, debt obligations, repairs, reserves, and capacity.
Commodity / Usage Charge
Water & Sewer Usage
Depends on water use and can be lowered through conservation.
Your Monthly Bill = Readiness-to-Serve + Water Usage + Sewer Service
2027 Water & Sewer Rate Tables
Readiness-to-Serve (RTS) charges are monthly. Commodity rates below are as listed in the resolution; the resolution does not specify the billing volume unit.
Sewer Rates
Water Rates
| Meter |
Village RTS |
Outside RTS |
| 5/8" or 3/4" |
$10.86 |
$16.29 |
| 1" |
$12.68 |
$19.02 |
| 1.5" |
$17.18 |
$25.78 |
| 2" |
$22.61 |
$33.92 |
| 3" |
$35.29 |
$52.94 |
| 4" |
$53.40 |
$80.10 |
| 6" |
$98.63 |
$147.94 |
| Commodity/Unit Rate |
$7.91 |
$11.87 |
| Meter |
Village RTS |
Outside RTS |
| 5/8" or 3/4" |
$18.41 |
$27.61 |
| 1" |
$21.49 |
$32.23 |
| 1.5" |
$29.13 |
$43.69 |
| 2" |
$38.33 |
$57.49 |
| 3" |
$59.82 |
$89.72 |
| 4" |
$90.51 |
$135.76 |
| 6" |
$167.16 |
$250.75
|
| Commodity/Unit Rate |
$13.60 |
$20.40 |
Why are Outside Village Rates Higher?
Standard rates for customers outside Village boundaries are established at 1.5x of corresponding Village rates, unless a valid written agreement requires different treatment.
Village-Owned Systems
The Village owns and operates the water and sewer systems serving Village customers and eligible customers outside its limits.
Long-term Responsibility
The Village is responsible for system operations, maintenance, capital planning, repair and replacement.
System Capacity
Rates support more than consumption: infrastructure capacity must be maintained even when water use is low.
Municipal Relationship
Township utility customers generally do not pay Village municipal property taxes. Utility rates nevertheless must be based on appropriate utility-service costs, not used as a substitute for taxes.
*** The development agreement that the Village of Holly completed in 2002 with Holly Township and the property development teams capped the Township rates at an amount double the water and sewer use fees ordinarily charged to Village residents. ***
Why do I pay a fixed charge if I don't use much water?
Because most of the system still has to operate whether you use 500 gallons or 5,000 gallons
Treatment
Keeps the water safe and sewer treatment operating.
Pumps & Equipment
Keeps wells, pumps and lift stations working.
Testing
Meet drinking water and environmental requirements.
Emergency Response
Repair breaks and equipment failures.
Why will the Readiness-to-Serve charge vary by meter size?
Larger meters create greater potential demand
A larger meter allows a property to place a greater potential demand on the water and sewer systems. Serving that potential demand requires the Village to maintain enough system capacity to meet it.
System capacity has a real cost
Larger-capacity service can require pipes, pumps, treatment equipment and other system assets to be sized to handle higher flows than those needed for customers with smaller meters.
The basic principle: customers whose service requires more system capacity contribute more toward the fixed cost of maintaining that capacity.
What are we preparing to invest in?
The current long-range financial model assumes nearly $16 million of water and sewer investment over five years.
Water System
$7.8M
Potential investment in water infrastructure and equipment.
Sewer System
$8.1M
Potential investment in sewer infrastructure and equipment.
Five-Year Total
$15.9M
Combined modeled water and sewer capital investment.
Examples of Water investments
- Water mains
- Wells and pumps
- Treatment equipment
- Controls and monitoring
- Lead service line work
Examples of sewer investments
- Sewer mains
Lift stations
Treatment equipment
Pumps and controls
Reducing infiltration and inflow
These figures are planning estimates, not one single $15.9 million project. Actual projects and costs will be refined through the Village's capital planning and budgeting process.
The important transition: Some older utility bonds are reaching the end of their repayment schedules, but that does not mean the need for utility revenue disappears. Holly is moving from paying for older improvements to planning for the next generation of infrastructure replacement and upgrades.
How will Holly pay for these improvements?
The strategy is not to rely on any one source. Holly can combine several tools to reduce pressure on customer rates.
Utility Rates
Ongoing revenue from customers.
Existing​ Reserves
Use accumulated cash responsibly.
Grants
Pursue outside funding when available.
Responsible Borrowing
Spread major long-lived costs over time.
Reliable infrastructure without placing the entire cost on today's customers at once.
If the utilities have money in the bank, why increase rates?
Holly does have utility reserves, and the financial plans assume some of those reserves will be used to help pay for improvements.
Using reserves helps keep rates lower
The 2025 Plante Moran model assumed combined water and sewer reserves would decrease by approximately $3.7 million over five years, primarily because cash would be used along with financing for capital projects.
But reserves should not go to zero
The Village still needs cash for day-to-day operations, emergency repairs, debt obligations and future equipment replacement.
The goal isn't to accumulate cash. The goal is to maintain enough cash to operate the systems responsibly while putting available reserves to work on needed infrastructure.
Aren't the old bonds being paid off?
Yes. Some of Holly's older water and sewer debt is reaching the end of its repayment schedule. That is good news, but it does not mean the systems no longer need investment.
Think of it this way: Holly is moving from paying for yesterday's infrastructure toward planning for tomorrow's infrastructure.
As older debt falls, the Village has an opportunity to use some of that financial capacity to address the next generation of water and sewer needs.
Why this still matters: Lower legacy debt service can create room for future capital investment, but it should not be confused with having no future utility costs. Long-lived infrastructure eventually needs repair, replacement or expansion.
Frequently asked questions
What is the Village trying to accomplish?
The goal is not simply to raise rates. The goal is to create a water and sewer system that:
- reliably serves customers today;
- replaces infrastructure before it fails;
- maintains responsible emergency reserves;
- uses available grants whenever possible;
- avoids unnecessary borrowing; and
- makes rate changes gradually and predictably rather than through large, unexpected increases.
