More than a year after raising prices on the city’s water and sewage rate, local leaders are considering another hike that may take effect this fall.

The Dowagiac City Council approved the first reading of amendments to the city’s water and sewage ordinances that would increase rates to these services, during its last meeting Monday at city hall. The council will conduct a second reading of the amendments during its next meeting July 10, at which time the members will vote on whether or not to approve the rate hikes.

The proposed increase would affect the typical four-person household as follows:

• Sewer: A household using 4,000 gallons of water can expect its bill to increase by $1.94.

• Water: A household using 4,000 gallons of water can expect its bill to increase by $1.99.

If approved by the council, the increases will take effect beginning Sept. 10.

The proposals come nearly a year after council members approved rate increases to the utilities — as well as to electricity — which were approved in April 2016.

“During the same period of time, reinvestment in the capital needs of our water and sewer utilities have continued and the need to make sure that unfunded liabilities are now being funded at appropriate levels,” said City Manager Kevin Anderson, in a memo to the council.

Anderson referenced the city’s ongoing improvements to its wastewater treatment plant, a $2 million project funded in part by state grants as well as local funds that is responsible for replacing and overhauling local lift stations, water towers and computers. The city is also assessing the condition of its sewer equipment, which will allow leaders to further quantify long term capital needs, Anderson said.

“A rate increase will be necessary for the city to maintain current operational, current capital investment levels, and take appropriate measures to address unfunded liabilities,” Anderson added.

Unlike last year’s hikes, the increase will go into effect all at once.

The city manager compiled a list of water and sewage rates of 10 other southwest Michigan municipalities, including Niles, Buchanan, Decatur and Cassopolis, as well ones farther away, including New Buffalo, Sturgis and Paw Paw. Dowagiac’s increased rates would be 9.5 percent below the average of these 10 communities.