Lorain committee hears utilities director on sewer deficit; council presses for alternatives to a single large rate jump

The Streets and Utilities Committee of the Lorain City Council heard a detailed briefing from Director of Utilities Joseph Carbonaro on the condition of the city’s water and sewer system and options to address a growing sewer fund deficit.

Director Joseph Carbonaro said the department is managing multiple capital projects required by an EPA consent decree, including upgrades to the Portland/Tacoma pump stations, ongoing sewer lining and a sanitary sewer evaluation study. ‘‘We received $4,000,000 in Ohio EPA principal forgiveness on the Yeager Road pump station project,’’ Carbonaro said. ‘‘On an $11,000,000 project that’s a substantial reduction in borrowing needs.’’

Carbonaro outlined that the consent-decree work has staggered completion targets — pump stations by 2027, continued annual lining through 2028 and the sewer system evaluation by 2029 — and said those projects, combined with rising energy and materials costs, have contributed to the sewer fund shortfall. He presented illustrative rate scenarios for council to consider, stressing that the numbers were projections not final decisions.

Council members pressed the administration on why proposals have emphasized increasing fixed charges rather than the usage (variable) component of bills. One council member said fixed-rate increases can disproportionately affect residents on fixed incomes who have little ability to reduce bills. Carbonaro and administration staff said they are evaluating all options, including phased increases, variable-rate structures and targeted relief such as homestead-style reductions for low-income or senior households.

Council members also asked for a clear reserve-policy target and multi-year financial breakdowns. The committee requested a 3–5 year detailed expense history and a 10-year forecast for water and wastewater operations to inform any decision on rates.

Public comment highlighted the twin themes of regionalization and financial transparency. Gerald Phillips of Avon Lake urged renewed consideration of regional or shared-service approaches that were discussed in prior studies and asked for current financial reports. ‘‘I would like to get 2023, 2024 and 2025 financial information for the Water and Sewer Fund,’’ Phillips said. The administration said Carbonaro’s presentation would be posted and that much of the requested financial material would be made available.

Delinquencies — the committee heard — are a significant part of the gap. Staff and the safety-service director said the city is finalizing an RFP to hire a third-party collections vendor to pursue accounts more than 31 days past due, with internal estimates that a vendor could recapture roughly 50% of eligible receivables. The administration said the total outstanding arrears across utility and related charges is about $2.25 million, with roughly $1 million attributable to sewer alone.

Residents and council members called for stronger enforcement against delinquent landlords and for legal remedies including liens and, in egregious cases, criminal referrals. Staff said the city currently uses liens and will include additional enforcement mechanisms as part of its strategy alongside the collections vendor.

No formal rate action was taken; the committee recessed during the regular meeting and reconvened to hear public comment, then closed the informational session asking administration to return with the requested financial detail and additional options on rate structure and consumer protections.

The committee scheduled follow-up conversations and did not set a vote or effective date for any rate change at this meeting.