City Council debates sewer rate proposals

“With my proposal of the $9 it is something that remains consistent, starts now, goes through 2021. I haven’t looked at it beyond that because I have great hopes that we would have a proper audit conducted by the state and completed by that time.” — Council-at-Large member Mary Springowski

Lorain City Council debated two competing pieces of legislation during a June 9 work session to reduce sewer rates for customers. Council looked at proposals that would lower the monthly Regulatory Capital Improvement Compliance charges. A first piece of legislation introduced by Council-at-Large member Mary Springowski would reduce the monthly charge to a $9 flat rate for the rest of 2020 and all of 2021. Council-at-Large member Mitch Fallis introduced a second piece of legislation that would drop the fee to $5 in 2020 and $10 in 2021. The city’s sewer fund currently has cash reserves of about $18 million and a rate analysis indicated the city can afford to lower the Capital Improvement charges under each plan. Currently, the fee is $15 and is scheduled to increase to $20 in 2021. In a review of the financials, Fallis said the Lorain Utility Department is projecting revenue would be down $3.4 million in 2021, but the plans still would enable the department to remain in a solid position while making rates more affordable. Utilities Director Paul Wilson said both plans were good, but he preferred a wait-and-see approach. “Like I stated at the last meeting, I would like to wait and see what happens,” Wilson said. “There’s a lot of moving parts here, a lot of assumptions we’re making.” He said he would conduct another rate study once the full impact of the novel coronavirus pandemic is known, but said there definitely is a case to be made for rate relief for customers. Several members spoke in favor of the more conservative Springowski plan. “With my proposal of the $9 it is something that remains consistent, starts now, goes through 2021,” Springowski said. “I haven’t looked at it beyond that because I have great hopes that we would have a proper audit conducted by the state and completed by that time.” Council has been waiting for an audit to be completed since the beginning of 2020 to address excessive water and sewer rates, and encouraged the city to do more for customers who are dealing with interest, penalties and advocated for a repayment assistance plan, she said. Ward 6 Councilman Rey Carrion said he originally supported the Fallis plan, but after spending a lot of time listening to his constituents, he expressed support for Springowski’s plan. “In my position in the Sixth Ward, it has been overwhelming; the $9 and $9 is what people would support,” Carrion said. “Right now, we have an issue with our seniors. “Folks on a fixed income are struggling, they’re drowning. What I’ve heard repeatedly from my constituents in South Lorain, is that although they do appreciate a lower reduction, the fact that it would be increased immediately in 2021 for them is just something that doesn’t give them stability.” Carrion also proposed creating an advisory committee made of stakeholders including industry and citizens to study sewer rates from all angles. Ward 4 Councilman Greg Argenti advocated for an annual review and rate adjustment, but said the city needs to do a better job of educating the community and explaining why adjustments need to be made.