Utility committee asks staff to draft ordinance for 20% wastewater rate increase

The Galion City Council utility committee voted May 6 to ask staff to draft an ordinance that would raise wastewater rates by 20% and forward the draft to the full council for consideration.

The request, approved by committee voice vote, followed a lengthy discussion of utility reserve shortfalls, major capital needs and options to avoid continued transfers from the city’s general fund. The committee debated three rate options — commonly described in the meeting as 15%, 20% or 25% increases — and explored non-rate alternatives such as using a local “freeze foundation” allocation for capital projects or taking short-term debt.

Utility Committee chair (name not specified) opened the discussion by noting the council’s limited formal authority over water rates but saying the committee has traditionally tied water and sewer policy together: “technically, council doesn't have anything to do with the water rates, but we've always made a kind of a tie,” the chair said. The chair and other committee members said a 20% wastewater increase would reduce or eliminate planned transfers from the general fund and begin to rebuild utility reserves.

Committee members raised several…