Sturgis commission allows shutoffs during ‘heating season,’ shifts delinquent aid to state program

The Sturgis City Commission voted Wednesday to update its general shut off rules, bringing them into compliance with new state law and allowing utilities to disconnect service for nonpayment during the “heating season.”

The change stems from the city’s decision to opt into Michigan’s Low-Income Energy Assistance Fund (LIEAF) program. Under Public Act 95 of 2013, municipal utilities like Sturgis were prohibited from shutting off power in winter. But revisions under Public Acts 168 and 169 of 2024 created an opt-in structure where cities can participate in the state program instead of running their own local assistance system.

City Clerk Ken Rhodes explained that starting October 1, Sturgis customers will see a $1.25 monthly charge on their utility bills. The money will be sent to the state, which administers aid for households that apply and provide documentation.

“It’s for electric, propane, gas —  any type of heating resource,” Rhodes said.

Commissioner Jeff Mullins asked whether limited funding could leave some residents without help.

“There is also the chance that it could run out, and some people that ask for assistance don’t get it,” Rhodes acknowledged. “That happens in all the current programs — they have a limited amount of funds, and when those funds are spent, they’re gone.”

Mayor Frank Perez expressed concern about what the policy shift means in practice. “Now we’re going to be shutting people off?” he asked, noting that while Sturgis previously had the discretion not to disconnect service, under the new rules the city will now have that authority during the heating season.

The discussion turned to the city’s largest delinquent customer — Sturgis Hospital. The clerk reported the hospital owes about $800,000 in unpaid utility bills. Perez argued the city should not impose stricter rules on residents while letting a large institution slide. “Fair is fair. I don’t think I’m out of line, because we’re going to be shutting people off. Let’s be fair and treat everyone the same,” he said, referencing a move to shut off the hospital too. 

Commissioner Jeff Mullins urged caution, warning of the consequences of cutting service to the hospital. “If you shut off a hospital, that affects everybody in the community too,” he said.

Perez countered, saying the hospital’s delinquency has gone on too long. “We’re going on two years … I think we’re beyond that now,” he said, pressing for a resolution. “I just find it hard to put a policy in place for hardworking residents that sometimes can’t pay their bill, and we have a hospital that hasn’t paid in 30 years.”

Other commissioners sought clarification on what enforcement tools are available. Clerk Rhodes explained commercial accounts like the hospital’s are handled differently from residential ones. “We do have the option to lien a property … those bills don’t go away. They get paid by the county, and their property is then attached to the lien, just as all taxes are paid,” the clerk said. They added that under city ordinance, unpaid bills older than six months are automatically subject to lien.

City Manager Andrew Kuk emphasized the new shutoff rules only apply to residential customers, not businesses. “This program only relates to residential, so businesses don’t fall under this law,” he said.

The commission ultimately approved the rules update on a 6-2 vote. Vice-Mayor Bir and Mayor Perez voted against the item while commissioners Mullins, Smith, Miller, Boring, Harrington, and Abbs voted in favor. Commissioner Justin Wickey was absent.

Other items

During commissioner comments, Commissioner Jeff Mullins said he has had a “change of heart” on the city’s recycling program and asked his colleagues to consider keeping it for one more year.

“I was totally against spending additional money for it, but I was thinking of that more long term,” Mullins said. “Now I’m thinking, for one year, maybe it’s worth ponying up the $150,000 so there’s no interruption in service. Then it can go to the ballot in 2026 and the people can decide.”

Mullins noted the current contract is set to expire December 31, which could create a gap if voters later approve bringing the program back.

Mayor Perez pushed back on the idea, questioning where the $150,000 would come from. City Manager Kuk said the proposal will be part of the commission’s next meeting, where recycling options will be formally discussed.

Mullins, who will be absent from that meeting while celebrating his wedding, reiterated that he would support a one-year extension to avoid service interruption.

The commission will meet next at 6 p.m. on Wednesday, September 24.

The city has also recently resumed streaming all commission meetings, which can be found here.

Maxwell Knauer is a staff writer for Watershed Voice.