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EAST LIVERPOOL -- During a meeting held Monday for the East Liverpool City Council's Public Utilities Committee, Tim Clark of the Board of Public Utilities addressed the situation with the water department and the possible rate increase for water.
Clark presented the committee with copies of finances for the department which showed as of Nov. 16 the department has taken in $2,686,461.78. He also provided a copy of the expenses and the amount of available cash after expenses. Operating expenses were figured at $1,007,775.; total expenses for the year have not yet been calculated.
According to Clark, the department is currently in the red with a $65,000 deficit balance. Clark also noted collections come in at about $65,000 a month so the department will end the year with a positive balance.
Clark also discussed the R&I fund and noted that it has significantly decreased since 2016, from $2.5 million to about $665,000 in 2022. There is approximately $400,000 in the account currently.
"We have brought the R&I fund down to nothing," Clark said. "One of the things that hurts us in that is, as you know we have done an asset management plan and they outlined what they believe we should do as far as assets, rate increases and different things."
It has been noted numerous times in previous meetings by multiple people that the asset management plan has not been followed and if it was the city wouldn't be in the financial condition with the water that it is currently in.
The asset management plan outlines deficiencies that the department has and estimates that it will take approximately $4.7 million to take care of them, Clark said.
Several of the deficiencies mentioned by Clark include the meter replacement plan, boosters at the booster stations and line replacement to cure water loss.
"If we raise the rates, if we raise them, we are going to put an extra $70,000 to the R&I." Clark said.
Clark said water loss is a huge issue and the city was only paid approximately 28% of the water they produced and in October they were paid 30.7% percent of the water produced and for November it was only 29.1%.
During a leak survey, leaks were discovered in August in the amount of 342 gallons a day, which converts to 10 million gallons a month, Clark said. At least 10% of water loss can be contributed to leaks.
Clark said that as the board members discussed rate increases, they tried to keep it as something they believe to be palatable as they know that any rate increase is unwelcomed.
"We know that there is no solution to this that we can see without being able to have the money to solve these problems," Clark said. "We believe we first and foremost need a meter program to know how much of this water is actually lost or unmetered in empty building or empty buildings that have leaks unidentified."
The board is looking at a $5 rate increase which would cost $31.80 for a 2,000-gallon minimum. This would be the second rate increase for the city. Water rates were increased earlier in the year.
There has also been discussion of an annual rate increase, but an amount has not yet been determined.
This would take East Liverpool from one of the lowest water rates in the area to about or slightly above some of the other communities based off the figures provided by Clark. The provided rates for surrounding areas include Steubenville at $48.35, Buckeye at $30.90, Toronto at $27, East Palestine at $26.25, Chester at $25.87, Salem at 32.02 and Lisbon at $31.63.
The board will continue to discuss rate increases and expects to make a decision at its next meeting.
Clark also noted that the EPA mandates a meter replacement program, line to the tank and line replacement would cost $4,600,000.
The water department is expected to start the year with approximately $200,000.
The Board of Public Utilities meets the third Thursday of each month at 2 p.m. in council chambers at city hall. The next regular meeting is scheduled for Dec. 21.
Kgarabrandt@mojonews.com