Cassopolis seeks $8.1 million for wastewater upgrades as projected bills rise 41%

The Village of Cassopolis is seeking $8.1 million in state financing for wastewater-system improvements that could raise a typical residential customer’s monthly bill by $21.89, according to a Michigan Department of Environment, Great Lakes, and Energy assessment dated March 10, 2026.

The assessment projects the typical monthly wastewater charge would increase from $52.89 to $74.78 if the proposed rate adjustment is adopted. That represents an estimated increase of about 41% for customers served by the local system.

Proposed wastewater work

The project would replace a force main, replace and rehabilitate manholes, and upgrade Lift Station No. 2. The facilities are part of Cassopolis’ wastewater collection system, which conveys sewage to the City of Dowagiac’s wastewater treatment facility.

EGLE identifies the Village of Cassopolis and the Cassopolis Area Utility Authority as the affected local system. The assessment cites a Cassopolis population of 1,734.

The proposed improvements are aimed at critical parts of the sewage collection network. For utility customers, however, the project would also bring a potentially substantial change in the recurring monthly charge if the projected financing and rate plan move forward.

Potential state assistance

Cassopolis is pursuing the financing through Michigan’s Clean Water State Revolving Fund. Under the criteria described in the assessment, the village may qualify for a 0.5 percentage-point reduction in its interest rate because the system meets the state’s overburdened-system criteria.

The project may also qualify for principal forgiveness equal to 13% of eligible financing, with the stated benefit capped at $1.053 million. Principal forgiveness would reduce the amount that must be repaid, although the final financing terms would determine the effect on the project and customer rates.

Rates and next steps

The $74.78 figure is a projection in the EGLE assessment, not a final customer-rate schedule. The assessment describes proposed financing and estimated rates; it does not establish final financing approval, a final construction contract or a construction start date.

That leaves the immediate financial effect for residents tied to decisions still ahead. If the projected adjustment is adopted, a typical residential customer would pay $21.89 more per month for wastewater service. The final amount could depend on financing terms and any rate action ultimately approved.

For now, Cassopolis’ request combines a major repair and upgrade program with potential state assistance and a projected increase in utility charges. The proposed work remains part of the village’s effort to secure funding rather than completed construction.