Utilities Board mulls rate increases

The Avon Lake Board of Municipal Utilities is considering raising waste water rates for 2018 and 2019.

The current proposal before the board would increase rates from the current rate of $4.80/1,000 gallons to $5.52/1,000 gallons for bills issued after July 1, 2018, and to $6.18/1,000 gallons on July 1, 2019.

The proposed increases come at a cost of about $40 per year for the average customer based on average residential usage, board officials said.

In the midst of an $80 million waste water capital improvement plan, the increases come as Avon Lake Regional Water will see its annual debt servicing increase from $3 million in 2017 to $5.6 million in 2025, according to project updates provided by the Board.

“We are actively looking for new revenue sources, but in the interim, we have to raise rates,” said Chief Utilities Executive Todd Danielson, in a recap of the Dec. 19 board meeting.

Danielson cited zero percent interest loans from the Ohio EPA, which have reduced interest expenses by $18 million, as an example of ways they have been able to increase revenue. He said the board will continue with that practice.

The debt service increases will drive annual operating expenses to $12 million from $8 million, prompting the board to consider rate increases.

Danielson cited 2016 statistics from the Ohio EPA indicating Avon Lake currently has some of the lowest waste water rates in the state, ranking in the bottom 25 percent with an average annual cost of $421 compared to the state average of $661.

The board has postponed approving rate increases until their next regular session Jan. 16 as members continue to examine and mitigate the potential impact on customers.