MSD seeks nearly $244M in 2025 budget; commissioners discuss reducing Sewer Backup fund

The Metropolitan Sewer District (MSD) presented its 2025 operating and capital budget to the Hamilton County Board of County Commissioners on Nov. 14, outlining rising non‑personnel costs and a request for funding to continue sewer backup prevention and response efforts.

Diana Christy, MSD director, told commissioners the O&M subtotal for 2025 is about $147 million, and the grand total including the Sewer Backup (SBU) program and debt service is nearly $244 million — an overall increase of about 2.1% from 2023. Christy said MSD manages roughly 3,000 miles of pipe, nine treatment plants and serves about 750,000 customers; the presentation and a detailed budget book are available on MSD's website and in the packet provided to commissioners.

Christy said much of the projected increase is in non‑personnel costs driven by contract re‑bids and sharply higher chemical prices — she cited chemical cost increases in the 39–43% range for items such as sodium hypochlorite — along with higher solids hauling/disposal costs and expanded security needs at facilities. To lower the personnel portion of the operating request, MSD shifted some labor costs into its capital budget where eligible.

The SBU program request for 2025 is $11.2 million, the same amount as 2024, and MSD said roughly 60% of that request supports prevention work (design and installation for properties with repeated backups), with the balance covering cleanups and claim payouts. Christy and staff said the program's annual needs vary with storm events; staff told the board they would return to request additional funds if emergency needs exceeded the allocation.

Commissioners pressed staff for clearer category definitions and vacancy accounting. Christy said MSD budgeted for 62 positions to remain vacant through the year and is not recommending eliminating positions; the vacancies are already reflected in the personnel estimate. She said some positions may need reclassification (for example, electricians, plumbers or IT roles) to reflect current workforce needs.

MSD staff also said the board could consider reducing the SBU request by about $2–3 million (to roughly $8–9 million) based on current year trends, with the understanding MSD would come back to the board if a severe storm event required additional spending. Jenny Richmond, MSD deputy director of operations, reviewed trend graphics showing spikes in calls, cleanups and settlement checks tied to major past storm events (notably 2011 and 2016) and said current year activity suggests room to reduce the request if the board so directs.

Richmond and other MSD staff raised an environmental concern about ash lagoons at Little Miami (a leased site), where vegetation growth could threaten liners; MSD is using current funds to clear growth and mitigate potential risks.

County Administrator Jeff Aluotto told the board he will present the county 2025 budget recommendation on Nov. 19 and will provide the board an advance copy prior to the presentation. The public hearing remains open for the MSD budget and staff indicated they will follow up with additional detail and definitions in the next packet and at subsequent hearings.