Lorain committee weighs sewer and water rate options as expenses outpace revenue

Chairperson Thornsberry opened the Streets & Utilities Committee April 6 by saying the city must "figure out a way to increase revenue or decrease expenditures" as the Utilities Department faces a growing budget gap.

Utilities Director Joe Carbonaro told the committee that projects completed in 2025 included a year‑6 sewer lining and rehabilitation costing about $2 million, design work on the Pearl and Tacoma pump station (an EPA requirement), and 90% completion of a digester improvement project. Ongoing projects he listed included PQM improvements construction, Jaeger Road and Martins Run pump stations, a sanitary sewer evaluation study (SSES) and water valve and tower work. Carbonaro said the SSES will help set a 5–15 year capacity plan and guide potential intergovernmental connections.

Carbonaro showed historical rate and fund trends, saying the city previously charged a fixed $21 water/$15 sewer rate and that later reductions left Water Works and the WPC (wastewater control) fund more vulnerable. He said personnel, operations & maintenance, energy and debt service are the largest cost drivers; in 2025 energy increased substantially (a cited 44% rise in one water‑work line item), and overall Water Works saw an 8% decrease in net position while WPC decreased about 14%.

Thornsberry and other council members pressed whether to raise fixed charges, phase increases, or seek smaller incremental adjustments. "We are still exploring our options," Carbonaro said, adding that "everything is on the table" and that rate structure decisions are for council. Auditor Harper described the sewer reserve requirement (12.5% of prior-year operating revenue, about $1 million at end of 2025) and noted water reserve guidance at roughly $900,000 (5.5%).

Councilmembers asked for more financial detail and options. Councilmember Dimacchia requested a three‑year revenue/expense breakdown and projections; Councilmember Kempton asked how many customers the system serves (Carbonaro said about 25,000, with just over 800 out‑of‑city accounts). Several members asked whether a new plant or other capital work would lower energy costs.

Administration and council also discussed delinquent accounts. Committee members and public commenters characterized delinquencies as a major concern: Carbonaro said total delinquent balances reported in the discussion added up to about $2.5 million across water, sewer, penalties and refuse, with sewer‑only delinquencies roughly $1 million. Safety/Service Director Carrion said the administration planned to issue an RFP for a third‑party collections vendor and that vendors typically report 40–50% successful recapture. Carrion said the administration is reviewing multiple rate and assistance options, including fixed or variable charges, homestead‑style reductions for seniors and a privatization comparison.

Multiple residents urged the council to hold landlords accountable rather than shift costs to paying customers. Joanne Zelina and Joseph Vaughn said tenants and seniors already face affordability pressures; Councilmember Springowski and others suggested lien authority and legal avenues against nonpaying landlords, while Carbonaro said an ordinance addressing lien authority was scheduled for a second reading.

Chairperson Thornsberry asked the administration to continue work with council and schedule follow‑up committee meetings in the coming weeks to narrow options before any legislation is introduced.

The committee recessed at 5:58 p.m. and reconvened after the regular meeting; no formal rate ordinance was adopted at the April 6 session.