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EAST LIVERPOOL -- East Liverpool residents could see a second water rate increase in less than a year.
The Board of Public Utilities (BPU) announced during Thursday's meeting that it will be asking city council to approve an ordinance for a water rate increase to go into effect in January.
The board is seeking a $4 to $5 increase per 1,000 gallons. This would mean at minimum water usage, residents would see an annual increase in their bill of $120.
There was further discussion about potentially adding a progressive increase of 3 percent annually for the next three years to try to get the water department's finances where they should be and allow the city to do the updates needed to the water and wastewater plants.
The previous increase was to serve the same purpose and also fund water line replacement projects.
With a 5-2 vote in May, council passed a water rate increase of $2.50 per 1,000 gallons.
Tim Clark, the newest appointment to the BPU, noted that the board has reviewed water and wastewater's finances and found the water department to be in critical shape and, based off that, believes a substantial rate increase is necessary.
"We understand the hardship this will have on all of our customers," Clark said. "We deeply regret this action and rate increase; however, we believe it is necessary to continue operating our water system."
The board discussed how almost all of the necessary materials such as chemicals, electric, pipe, hydrants, repair clamps and more have drastically increased in cost.
The board also believes several expensive capital improvements projects which have seen multiple delays over the past couple of years and are now slated to happen next year warrant the rate increase.
The improvements are required for the city to stay in compliance with the Environmental Protection Agency (EPA).
The board members addressed council member Brian Kerr who was present at the meeting with council member Fred Rayl and said they would like to have a work session with the council's utility committee which Kerr chairs to discuss all the options. They hope to have an ordinance for the rate increase for council to vote on at the Dec. 4 meeting.
Kerr and Rayl both indicated their support for the rate increase.
Clark noted that operating expenses are approximately $2.7 million for the water department, and they have only collected approximately $2.6 million this year, so what they collect in November and December will be the only funds they have going into next year.
Kerr noted that if the rates aren't increased to bring the water department's finances into a state of stability and get the capital improvements projects completed, then there is a real threat that the EPA could order an outside company to order the situations and an outside company could raise the rates as much as they want and the city would have no say in it.
"We realize this rate increase is sudden and unwelcome, but necessary and will reposition our water rates from the cheapest in the area to on par and comparable with surrounding communities," Clark said.
East Liverpool's water rates were a fair amount below the rates in surrounding areas and the increase in May was the first one since 2017.