Galion utilities committee weighs 15–25% water and sewer rate increases to cover shortfalls

At a Galion City Council utilities committee meeting, members and staff reviewed projections showing a substantial shortfall in the water and sewer funds and discussed options including 15%, 20% or 25% rate increases, further transfers from the general fund, borrowing and a potential property-tax levy to fund large capital projects.

Committee members said staff calculations — prepared by city finance staff and reviewed with the auditor — indicate that covering operating shortfalls and upcoming capital needs solely by raising rates could require a roughly 20%–29% revenue increase under the assumptions used. Staff told the committee they compared several scenarios (15%, 20% and 25%) and modeled the effect on representative residential bills at different household usage levels.

The discussion centered on two budget pressures: recurring operating shortfalls that the committee expects will continue if not addressed, and large capital needs driven by regulatory requirements and aging infrastructure. Committee members said the group had budgeted a general‑fund transfer to utilities this year (the water transfer was…