Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Service Agreement Rates topic
No spam. Unsubscribe anytime.
Committee backs phased reduction in 10% outside-city surcharge in trilateral master water agreement
Summary
The Building Utilities Committee recommended the City Council authorize a trilateral master water service agreement with Miami County and West Milton that phases a 10% outside-city surcharge down over the contract term; the committee instructed staff to return the agreement to Council for approval.
Samuel Pierce, chair of the Building Utilities Committee, introduced a recommendation that the City Council authorize the Director of Public Service and Safety to enter into a master water service agreement with the Board of Commissioners of Miami County and the municipality of West Milton.
A staff member explained the city’s previous 20-year agreement with Miami County and West Milton expired at the end of 2023 and that, after county review, staff proposed a phased reduction of the 10% premium charged to accounts outside the corporate limits. The staff member said the contract would be backdated to 2024 because the parties have continued to pay the 10% surcharge since the prior agreement expired.
Under the phase-in described by staff, the surcharge would drop from 10% to 7.5% for 2025 through 2028, then to 5% for the subsequent multi-year period, and then to 2.5% for the final 10 years of the contract. The staff member said the county has indicated it is "very satisfied with the rate structure" although the county had not taken final official action at the time of the committee meeting. The staff member said West Milton’s decision was pending and that if West Milton declined to participate, the city would keep that municipality at 10%.
The staff member said staff analyzed the revenue impact and concluded the revenue effect on the city's rate structure would be minimal because the system has little remaining debt and ongoing improvements are funded through rates and fund balance. The staff member also said the draft agreement clarifies annexation language and how to handle transfers of in-ground infrastructure that carry no debt service.
Council members asked whether the city would reimburse customers for lower surcharges for the period since 2024; the staff member said the city would "calculate that internally and maybe adjust a future bill." After discussion the committee unanimously recommended proceeding as staff requested and forwarding the agreement to Council.
The committee closed the meeting after making both recommendations.
