Council adopts sewer-rate amendment as finance director warns of multi-year fund-balance draws

The Conneaut City Council on April 13 approved an amendment to the city’s sewer charges and heard a finance briefing that described multi-year draws on fund balances and an upcoming large loan for wastewater improvements.

Ordinance No. 25-26, placed for third reading, was declared an emergency and adopted unanimously. Finance Director Williams told Council that a 30-year, $9.4 million Ohio Water Development Authority loan at 2.96% will fund the wastewater treatment plant (WWTP) NFA project, with annual payments of about $476,000 starting in 2027. Williams said one existing WWTP loan will be paid off this year (about $226,000 per year) but cautioned that debt service will spike in 2028 and that 5% annual increases may not suffice to meet OWDA’s underwriting tests.

Williams reported the city used roughly $862,000 from fund balances across 2023–2024 to support operations and that water funds were drawing reserves; however, water revenue is about $175,000 higher than a year ago after rate and meter-charge changes. He told Council the current 2.75-mill street-improvement levy, if applied at the new assessed valuation ($244 million), would generate roughly $170,000 more than under the old valuation.

Councilmember Branch said the city is not collecting enough in water revenue to cover services. City staff did not propose an immediate specific rate schedule beyond the adopted sewer amendment but indicated utility rates and capital planning will be ongoing topics as loan payments begin.

The meeting also previewed larger capital-program funding choices: staff outlined bidding and millage options for an expanded paving program and described how increased millage or creative development incentives might be required to scale resurfacing to the level suggested in the manager’s report.