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Lorain finance committee examines water fund deficit, delinquencies and sends revised budget to full council
Summary
The finance committee reviewed the 2026 budget, discussed a deficit in the water pollution control fund, OWDA encumbrances, utility delinquencies and shutoffs, and approved a motion to send a revised appropriation ordinance to full council for a special call.
The Lorain City Council finance committee met on Feb. 5, 2026, under the vice chair and focused on the permanent 2026 budget and the water pollution control fund. The auditor told the committee the water pollution control fund is in deficit and that she plans to increase revenue estimates now to present a balanced appropriations ordinance; staff will revisit those estimates in three months and reduce them if necessary.
Auditor: "I'm going to increase the revenue sources to cover that deficit at present," she said, explaining the approach is intended to buy time for council to discuss rates and other measures.
Committee members pressed staff about OWDA encumbrances and timing. The auditor said several million dollars were encumbered for OWDA projects in 2025 and that reimbursements are typically reimbursable — the city must sometimes show revenue in the current year to cover prior‑year encumbrances. Council asked staff to provide a schedule showing how much of the $6.8 million encumbered will be spent in 2026.
Council and administration discussed delinquent utility accounts and shutoffs. Staff reported roughly 26,000 in‑city customers and about 800 out‑of‑city customers; staff also summarized delinquency and shutoff activity and noted ongoing reconnection arrangements and nonprofit or federal programs that may assist customers. The committee asked for a breakdown of delinquencies by age and how many represent inactive properties.
The committee heard a request from water pollution and engineering staff for an additional $50,000 appropriation in the operation, maintenance and repair sewer fund to cover an emergency repair to a Black River wall and related safety work. Engineering said the concrete surface and fencing require repair and that the work will be coordinated with harbor/site managers ahead of dock work.
Committee action: A member moved that the committee send the revised appropriation ordinance to full council for a special call and asked the auditor to revise the ordinance to reflect committee amendments. The motion was seconded and members present voiced assent; the committee approved the motion and directed the auditor to update the ordinance for council consideration.
The auditor also reported an A2 credit profile from Moody's in connection with an upcoming bond sale, and planning staff announced that HUD had released the city from special conditions on HUD‑funded projects after a multi‑year correction process.
Next steps: staff will provide the requested OWDA timing and delinquency breakdowns, the auditor will revise the appropriation ordinance, and the committee will reconvene with monthly budget reviews (utilities meeting scheduled for April 6 and a finance review on April 13).
