Chardon water, sewer rates tweaked again

Fees adjusted as plant debt retired, funds for capital projects required

Some Chardon residents will see an increase in their water/sewer bills come July — and some a decrease.

City Council recently passed legislation enacting changes in order to fund capital projects to improve the utilities.

Dedicated fees for such expenses weren’t part of the last rate adjustments, scheduled 2012 to 2021 to offset the amount paid out of the general fund to subsidize water and sewer operations.

A $12.89 million loan — and $4.3 million in interest — used to cover an Ohio EPA-mandated upgrade and expansion of the sewer plant will be paid off at the end of June, eliminating the Wastewater Treatment Plant fee on about 72 percent of monthly bills.

However, the remaining residential customers will see an increase of about $8 per bill. These are customers who weren’t paying the sewer plant upgrade fee because they connected to the city’s sanitary sewer system after April 20, 1993.

“New homes have to pay a sanitary sewer impact fee when constructed, instead of paying the upgrade fee as a part of the monthly bill,” Finance Director Mate Rogojic said.

The $8 is based on using 4,000 gallons of water per month, which is about the average customer.

The water/sewer rate legislation is based on a study completed last year. The city identified at least $8.2 million in water and sewer projects awaiting funding.

“Having dedicated funding for water and sewer capital needs will help the City better plan for important projects and potentially reduce loan funding,” said a report to Council. “This, in turn, would reduce overall costs in the long run because interest expense is tied to most loans for water and sewer projects.”

Other key changes are: • Eliminating the Water Treatment Plant Surcharge and the Eastside Sanitary Sewer Trunk Surcharge, due to enacting a Water Capital Improvement Fee and increasing the Sewer Capital Improvement Fee.

• Allowing the water and sewer capital improvement fees to be a part of the Utility Discount Program, to go along with the operating rates for water and sewer. This would provide more relief for those customers that have the greatest need for financial assistance.

• Starting with the January 2022 bills, maintaining the past practice of small, incremental rate increases each year to help ensure revenues keep pace with personnel and inflationary cost increases, avoiding the need for significant one-time increases, and balancing the impact on customers.

Beginning next year, increases will be as follows: 1.5 percent to both the water and sewer capital fees, and to the water operating rate; and 3.5 percent increases to the sewer operating rate, which requires a higher increase based on the financial projections in the Sewer Operating Fund.

These increases are planned through at least 2027.

Councilman Jeff Smock thanked Rogonjic for his work on the rate plan.

“I think this is absolutely headed in the right direction, it streamlines the rate structure a little bit and sets us up to continue to keep adequate fund balances and provide enough money for the capital program that we need to do,” he said.

The water/ sewer rate legislation is based on a study completed last year.