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CELINA - Celina city councilors are poised to raise water rates 26.5% over the next two years to ensure the city's water account has a minimum balance of $2 million, as "massive projects" are expected to take a toll on utility coffers.
At Monday night's regular meeting, councilors unanimously passed first reading of legislation that would authorize the first water rate hike since 2013, as well as bump up the Water Treatment Chemical Cost Adjustment mechanism from $2 to $2.75 per 1,000 gallons consumed/billed.
As the name suggests, the WTCCA, added to monthly water bills in 2010, is designed to recover costs associated with chemicals used to treat the city's drinking water supply.
"We desire to maintain at least $2 million in the water fund for emergencies or catastrophic events," council president Jason King said, reading from the minutes of a commitee meeting. "And some planned capital projects at the water plant are deferred due to budget constraints as of now."
If enacted after final reading, the water rate would increase 15% on April 1 and then another 10% on Jan. 1, 2017. The hike would apply toward both residential and rural water rates.
Effective April 1, under the residential classification, the minimum monthly bill would rise from $31.77 to $36.54. Also, the trailer park rate would climb from $10.16 to $11.68 per 1,000 gallons and the bulk rate would rise from $10 to $20 per 1,000 gallons.
Under the rural classification, the minimum monthly bill would rise from $47.36 to $54.87. Also, the trailer park rate would climb from $19.62 to $22.62 per 1,000 gallons.
Effective Jan. 1, 2027, under the residential classification, the minimum monthly bill would be $40.19, and the trailer park rate would be $12.85 per gallon. The bulk rate would remain the same.
Under the rural classification, the minimum monthly bill would be $57.61, and the trailer park rate would be $24.88 per 1,000 gallons.
Asked by councilman Eric Clausen why city administrators waited until now to raise the water rates, city safety service director Tom Hitchcock explained that the water account has maintained a threshold well above the $2 million limit set by councilors but will soon take a hit.
"Up to now we still have that minimum dollar amount of $2 million. Projected years coming up, we will not have that. We're going to cut under it, hence the reason we're bringing the rate to you now," Hitchcock said.
In short, Hitchcock said there's no reason to consider hiking rates - and collecting more money - unless the water account is projected to fall bellow the $2 million threshold.
Hazel said water treatment plant superintendent Mike Sudman has reported escalating treatment costs across the board.
In addition to those spikes, major water line replacement projects will further strain the water account, Hazel said. For instance, the State Route 703 water line replacement project is pegged at about $800,000.
"Those all have to come out of water because they're water rates, and when that goes up, we also look at how much you have in your reserve, how much can it pay for," he said. "Every road reconstruction project we're doing we're also replacing the water lines. I think one of the beauties of that is over the last 10, 12 years, we've reduced water main breaks by somewhere in the upper 90 percentile over what they were before."
Hitchcock elaborated further on forthcoming expenses.
"Even now we're just above the $2 million threshold, but with Sugar Street coming up and some of the other projects, we are projected to be well under that, hence the reason we're bringing it to you now," he said.
Water customers, however, will see some relief in their monthly water bills in 2028 once the remaining debt on granular activated carbon (GAC) filtration upgrades to the water treatment plant is fully paid off.
"I think the other thing to keep in mind, the GAC adder should be coming off at the end of 2027, and I think that's $7 apiece for residential.That had a sunset clause on when it was put on, so once the debt is paid, it stops. So that $7 will come off, which will certainly help," Hazel said.
The Ohio EPA had issued Celina a deadline of Sept. 30, 2009, to have the average trihalomethanes in its drinking water in accordance with state standards or face a $20,000 penalty. Organic material in the water had been reacting with chlorine in the water to form THMs, which lab tests have linked to some forms of cancer and other diseases.
In order to comply with the mandate, the city added a nearly $7 million water treatment facility equipped with eight carbon tanks that adds granular activated carbon filtration to eliminate THMs.
Councilors meet next at 7 p.m. Feb. 23 in council chambers on the second floor of the city administration building.
