Cleveland and Suburban Mains Sign 20-Year Water Service Agreement for Infrastructure Renewal

The City Council of Mayfield Heights convened on August 4, 2025, to discuss significant updates regarding a new water service agreement with the City of Cleveland and its implications for local economic development.

The proposed restated agreement, which is set for a minimum duration of 20 years, aims to facilitate long-term reinvestment in the suburban water infrastructure. Council members were informed that the agreement would automatically renew each year, eliminating the need for proactive renewal steps. However, communities retain the option to revert to the previous water service agreement with a five-year advance notice if they find the new terms unsatisfactory.

Key features of the agreement include the transfer of ownership of smaller water mains from Mayfield Heights to Cleveland, which will enable the latter to undertake necessary capital improvements. This transfer is designed to streamline the management and maintenance of the water distribution system.

The council also discussed the economic development aspects of the agreement, which includes a municipal utility district agreement that replaces the previously used Joint Economic Development Districts (JEDDs). This new framework allows for bilateral agreements between communities, promoting regional cooperation while placing certain limitations on real estate tax abatements and prohibiting income tax abatements.

The agreement outlines a system for sharing income tax revenues when businesses relocate between the two communities, with the gaining community remitting half of the new income taxes back to the losing community for the first five years. This provision aims to mitigate the financial impact on communities that may lose businesses.

Additionally, the council reviewed the criteria for prioritizing water main replacement projects, which include factors such as break rates, fire flow capacity, and water quality issues. The process for nominating streets for consideration in the water main renewal program involves a technical committee that evaluates and scores submissions from participating communities.

In conclusion, the council's discussions highlighted a commitment to enhancing water infrastructure while fostering economic development through collaborative agreements with neighboring communities. The next steps involve finalizing the restated agreement and implementing the outlined provisions to ensure effective management of water services and economic incentives.