The North Royalton City Council approved legislation that will increase the five-year sewer rates, beginning this year. The measure was introduced at the November 21 City Council meeting and then passed unanimously at the December 19 City Council meeting.
The plan, formulated by the Raftelis Financial Consultants, Incorporated, included recommendations for proposed rates for the next five years for the sewer enterprise fund, in order to support 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 management consulting firm has been working on the study for about fifteen months. Joe Crea, Vice President of Raftelis, said that “usage, overall has been stable since 2018. Operating costs have increased 7.5% per year since 2019.”
Raftelis was also the firm contracted for the last survey, which took place in 2017. The recommendations that were made at that time were based upon the then-current usage and population of the city, the maintenance and 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 new rates, which begin with 2024, are 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.
Ward 3 Council Rep Joanne Krejci asked for confirmation that the increase would be 9% for 2024 and 4% for each following year, which was confirmed. She questioned whether there were any other options, but was told that there were not. Ward 1 Council Rep John Nickell noted that the cost of everything is going up. He noted that he didn’t like it and would like to see smaller increases, but “if you don’t pay more now, you are going to pay more later.” Mayor Larry Antoskiewicz commented that “I’m not happy with 9% either, but we have to do what’s right. It is not supposed to run as a deficit.” Ward 5 Council Rep Heidi Webber said that “the problem with voting on something for a five year increase cumulative of 28%. I’d feel better if we could do something like 4% for two years and see how we are doing, but the Mayor said it didn’t work.” Finance Director Jenny Eseray responded that Council can at any time to change the rates. Ward 2 Council Rep Linda Barath stated that “people will call when they get the bill.”
She said as a retiree, she is not happy, but understands the need to do it.
By GLORIA PLEVA KACIK
Contributing Writer