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Tallmadge council advances multi-year water rate increase to cover $5.6 million in pipe repairs
Summary
Council moved ordinance 2025-53 to second reading after a lengthy presentation showing the water fund could run out by 2027 without rate increases and proposed phased increases over four years tied to $5.6 million in infrastructure work financed with OWDA loans.
Tallmadge — The Tallmadge City Council advanced ordinance 2025-53 to second reading on May 8 after receiving a presentation from the finance director showing the city’s water fund would deplete within two to three years if no rate changes are adopted.
Finance Director Molly Gilbreit told council, “I know they’re rather large, but we have not had water rate increases in Tallmadge since 02/2012.” The presentation showed a $5,600,000 backlog of water infrastructure work the administration expects to address during the next five years.
Why it matters: The administration said major, age-related water-line repairs and replacement projects — and the cost of repeated main breaks and water loss — require new revenue. Without rate changes and borrowing, projections showed the water fund dropping below the city’s minimum fund-balance policy by mid-2027.
Gilbreit outlined the city’s current water-charge structure and the proposed phased increases. The current minimum quarterly charge is $34; the average residential quarterly water bill is $72.65 (annualized $290.60). Under the proposal, the first-year increase would raise the average residential bill by $7.26 per quarter (about $30 per year); a second-year step would add $11.99 quarterly; the four-year plan would bring the average quarterly water charge to about $121. The administration modeled the increases with debt service for five water projects and said the increases keep the fund near policy while the work proceeds.
Public-service Director Greg Rohrer and Gilbreit said each of the five major repair projects would be financed through Ohio Water Development Authority (OWDA) loans and repaid from the water fund. Rohrer told council staff needs numbers from consultants and lenders to include in the 2026 budget.
Council members asked for additional analysis and suggested building an ongoing indexing mechanism to reduce the need for large lump-sum hikes in future years. Councilman Nick Rubino asked whether the plan should include a smaller, recurring annual increase tied to an index; Gilbreit said she plans to analyze rate structure options and return with an approach that could include indexing or caps tied to fund balances. Councilwoman Mary Gutman and others requested follow-up sessions with finance staff to examine long-term projections and the schedule of the five priority projects.
What council acted on: Council left ordinance 2025-53 to second reading for further review; no rate was adopted at the meeting. The administration said it will present additional data and options at subsequent meetings so council can consider third reading and a vote.
Background and next steps: Gilbreit said the city has not raised water rates since 2012 and that sewer charges have driven much of past bill growth. The administration will finalize borrowing plans with OWDA and return with refined projections; council members requested a multi-year plan that could include smaller, regular increases and a review of the minimum fund-balance policy. The committee recommended three readings so councilors and staff can digest the financial model and capital schedule.
