A presentation was given to the City Council Finance Committee at their November 21 meeting on the proposed sewer rates. The presentation was given by Raftelis Financial, which conducted the five-year rate study. The management consulting firm has been working on the study for about fifteen months.
The plan includes recommendations for proposed rates for the next five years for the sewer enterprise fund, in order to provide the revenues to support the sewer system. An enterprise fund is a government fund that is self-supporting by selling goods and/or services to the public for a fee.
The last survey took place in 2017, when the City contracted Raftelis Financial Consultants, Incorporated to conduct the rate study. The recommendations that were made at that time were based upon the then-current usage, population of the City, and maintenance of the waste water system. The study concluded that an increase in user fees would be required to meet both those current and the anticipated upcoming expenses for the operation, maintenance and debt reduction of the Wastewater Treatment department for a term beginning in 2018 and lasting through 2022, as follows, per mcf:
2018, rate of $84.71 for the period of January 1, 2018 to June 30, 2018 and the rate of $79.29 with a $5.00 per month service charge from July 1, 2018 to December 31, 2018.
2019, rate of 82.98, plus a $5.00 per month service charge
2020 rate of $85.43, plus a $6.00 per month service charge
2021 rate of $87.09, plus a $7.00 per month service charge
2022 rate of $88.83, plus a $8.00 per month service charge
In October, 2022, Council adopted an ordinance that raised the rate charges for 2023 only. Although it has been the City’s practice to schedule the five-year plan, which would have begun in 2023, with a rate study that would cover the period of 2023 through 2028, the City Administration decided to push the study forward and deal only with 2023. That 4% rate increase was raised to $92.56 per mcf, plus a $9.00 per month service charge. The rate will be allocated as follows: 36.25% for Wastewater Maintenance; 50.25% for Wastewater Treatment and 13.50% for Wastewater Debt Service.
Joe Crea, Vice President of Raftelis, explained that historically, they looked back over the past five years to establish the baseline. They also looked at policy. He noted that a few key drivers were substantial operational increases driven by inflation, such as chemicals, wages and benefits. Also a factor was the Northeast Ohio Regioinal Sewer District ( NEORSD) treatment projected rate increases over the next few years, the City’s major B plant capital project, with dramatic cost increases for construction with a $20M cap and projects over the next two years. All this leads to needed increases in revenues. He noted that since an enterprise fund is self-sustaining, the need for how rates are set is relative to what has been planned.
He said that “usage, overall has been stable since 2018. Operating costs have increased 7.5% per year since 2019.”
Council introduced legislation at the November 21 Council meeting that lays out the five year plan, beginning in 2024, as follows:
2024 Fixed charge per bill, $11.00. Rate per MCF consumption, $100.89.
2025 Fixed charge per bill, $13.00. Rate per MCF consumption, $105.43.
2026 Fixed charge per bill, $15.00. Rate per MCF consumption, $110.07.
2027 Fixed charge per bill, $16.00. Rate per MCF consumption, $115.13.
2028 Fixed charge per bill, $17.00. Rate per MCF consumption, $120.31.
Council placed the measure on second reading.
“We are trying to keep things under control for our residents,” said Mayor Larry Antoskieiwicz. “I think it is reasonable, compared to our neighbors.”

By GLORIA PLEVA KACIK
Contributing Writer