Wintersville Water/Sewer Rate Proposal |
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| Source: Village of Wintersville, Bob Thomas |
Herald Star, January 27, 1998
By Bob Thomas
Staff Writer
WINTERSVILLE – Village council will hold a special meeting at 7 p.m. Wednesday at the Village Building, 221 Leonard Ave., to hear the first reading of ordinances to raise water and sewage rates.
"I think we need to make a move on this," said Council President Joe DeArdo Jr. "We need to look at raising our water and sewer rates immediately."
While DeArdo wants to see the new rate proposal adopted as soon as possible, he said the issue will be given three public readings before a final vote is taken to give residents ample opportunity to address council with any concerns they might have.
Wintersville Water/Sewer Rate Proposal |
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| Source: Village of Wintersville, Bob Thomas |
Currently, the village is losing more than $13,000 each month on water and sewer services, according to a financial report presented to council by Village Administrator Reagan Parsons on Jan. 20.
"The cost of doing business increases every year," Parsons said, noting the rising costs associated with maintaining old lines and the increase in bulk water charges that went into effect last month as part of the new water contract with the city of Steubenville.
Wintersville's water and sewer departments were well into the red at the end of 1997, with the water department posting a $94,878.74 deficit, and the sewer department a $68,851.60 deficit, according to Parson's report. Combined losses for both departments were $163,730.34 for the year.
The numbers weren't a surprise.
Both departments have been operating at a loss for several years, with deficits being covered by previously accumulated surpluses, Parsons said.
Parsons added the surpluses accumulated in water and sewer accounts because several maintenance projects haven't been completed, resulting in sharply increasing maintenance costs.
"Basically, we've been putting out fires," Parsons said, referring to the village's approach to water and sewer maintenance. "Now we're getting hit with large breaks."
He said the surpluses in water and sewer accounts are nearly depleted, creating a concern over the rising maintenance costs.
"It's only going to get worse because of the new contract," Parsons added.
While the issue has been discussed in the past, action hasn't been taken because officials are reluctant to raise rates unless it is unavoidable.
The last increase in sewer rates was approved in 1992 to cover a loan for capital improvements, Parsons said, adding that the last water rate increase occurred prior to that.
"When I came on council three years ago, there was a deficit, and I wanted to address the issue then," said Councilwoman Beth Rupert.
Along with his financial report, Parsons presented a rate increase proposal that was developed with the help of Councilman Joe DeArdo Sr.
The proposal calls for a 14 percent increase in the basic water rate (up to 3,000 gallons per month), a 38.5 percent increase for water overage (more than 3,000 gallons per month), and an 8.5 percent across the board increase in sewer rates.
Parsons said the proposed increases were based on the revenues needed to make both departments pay for themselves at current usage levels.
DeArdo Jr., who has succeeded Rupert as council president this year, has made the growing deficits his top priority.
At the last regular council meeting on Jan. 20, DeArdo Jr. entered a motion to bring in an ordinance to adopt the proposed rate increases.
But before his motion received a second, Councilman John Synodinos interjected, saying the proposal should be reviewed by the water and sewer committee before legislation was brought before council.
DeArdo Jr. responded by withdrawing his motion and tabling the issue pending a committee review.
Synodinos has said on numerous occasions that he opposes any increase in water and sewer rates.
"There was a surplus on income tax," Synodinos said. "I feel we can run in the red where water and sewer rates are concerned."
He said raising water and sewer rates would create financial hardship for many residents and doesn't feel council should do that when there are revenues in other areas of the budget that can cover the deficits.
Parsons disagrees.
"My interest is in providing high-quality police and street services," he said, noting that subsidizing the water and sewer departments with general fund moneys, while allowable, isn't prudent because the community would be better served by using those funds to buy badly needed equipment like a new police cruiser.
Other council members also see the rate increases as necessary.
"These are enterprise funds and should be holding their own," said Councilman John Polsinelli.
Issue: Providing drinking water is a business, which, like all businesses, requires responsible management to reliably deliver safe drinking water to its customers.
How would you make sure the drinking water system serving your community is managed responsibly?
The U.S. Congress developed a new focus in 1996 making sure water systems have what it takes to provide safe water for the long term. Congress instructed the U.S. Environmental Protection Agency to review existing practices and guide the states through development of a program to:
The Ohio legislature in 1997 has authorized the director of the Ohio Environmental Protection Agency to deny the approval of plans for new public water systems, if they cannot demonstrate technical, financial, and managerial capacity. The Ohio Environmental Protection Agency adopted rules and guidelines for assessing the capacity of new systems, loan applicants, and existing systems to maintain compliance with drinking water regulations on a long-term basis. The rules require new systems and loan applicants to submit a capacity assurance plan consisting of a general plan, a management plan, and a financial plan. The plans for new systems and evaluation of existing systems are to be based on readily available information.