Council approves sewer rate increase
By
Brandy Chandler-brandychandler@gmail.com
After three months of discussion and consideration, the Hillsboro City Council voted 5-0 to pass a resolution approving a 15-percent increase to sewer rates over three years.
Council members said following Monday's meeting that the increase will go into effect immediately. The rates will increase 5 percent per year for the remainder of 2011, 2012 and 2013.
Council's utilities committee began discussing the matter in June, and it was officially brought before council in July. Utilities committee chairperson Dave Shoemaker said that he wanted the legislation to have three readings before council so that Hillsboro residents would have the opportunity to express their opinions on the matter.
On Aug. 23 council held a town hall meeting where approximately 40 Hillsboro residents turned out to discuss the city's construction of the $17 million- wastewater treatment plant, Ohio Environmental Protection Agency mandates that made the upgrades to the plant necessary, and the grant dollars that have been secured to go toward funding the plant improvements.
During the council meeting the city circulated a letter from Gregory Smith, Chief of the Division of Environmental and Financial Assistance with the Ohio EPA that responded to an inquiry from the city regarding additional financing for the project.
Smith's correspondence was in response to a letter from city administrative assistant Kirby Ellison, who worked to secure the grant funding for the project.
In her letter to Smith, Ellison wrote, "The (Hillsboro) residents felt that the current economy prohibits any rate increases and they questioned why the city felt it was necessary to comply with the EPA. Ideally, these folks would like to meet with the director of the Ohio EPA to express their feelings. I am left with asking if there is any way the city can obtain a lower interest rate on any of our loans. Highland County has experienced severe job losses since 2009; this coincides with the pull out of DHL in Wilmington, Ohio. The unemployment rate average for 2008 was 7.4 percent, which rose to 15.1 percent in 2009, 16.15 percent in 2010, with a current rate was of June 2011 of 13.4 percent, which is significantly higher than the state of Ohio rate at 8.8 percent. (Though numbers were not immediately available for Hillsboro residents) there are 18,000 individuals receiving assistance at this time. We have a lot of homes that are empty and in foreclosure and we have 2,688 users at this time. Sewer revenue is down $27,951.38 from this time last year. New sewer taps are almost non-existent."
Ellison also noted that the WWTP renovations are 56 percent completed.
"Since 2004 total sanitary sewer and wastewater projects equal $20,561,136, funding from grants and 0-percent (interest) loans equal $8,603,821. Loans through DEFA will equal $11,957,314.
Smith responded that he was not aware of any type of "continuing financing" that would fund a project once a majority of it has been completed.
"In view of some of the comments that are being posed to you by the public, I must add that the wastewater system funding 'package' that Hillsboro officials have assemble is one of the most extensive combinations of grants and low-interest loans we have seen in practice. Since 2004, you have acquired well over $8 million in 0-percent interest and grants for infrastructure financing. This has resulted in extraordinary savings for your residents," Smith wrote.
Council voted in 2008 to freeze sewer rate increases until they saw what sort of funds they would have available. If the increase is enacted, base rates for sewer will be $25.42. If council had not frozen the increases in 2008, today the base rate would be $43.30."
"Ohio EPA is obliged to enforce the provisions of the federal Clean Water Act, which include requirements to eliminate overflows and plant bypasses that allow raw sewage to be discharged into waters of the state," Smith wrote. "All other communities in Ohio face the same responsibilities to protect the streams in their watersheds for human recreation and aquatic life. As you know, Hillsboro has had long-standing sewage collection system overflows and treatment works bypasses into Clear Creek, and Ohio EPA has documented these violations over two decades. While Ohio EPA could not 'waive' these violations, the agency worked closely with the city to develop a manageable timetable for a return to compliance. The city's implementation schedule saves money by completing the necessary wastewater system improvements without even greater expense. We regret that there is not more we can do to assist Hillsboro during these difficult economic times."
Prior to council's vote, Hillsboro residents Christine Kerley spoke on several issues, and told council that she was firmly against the increases because the residents could not afford it. Although there were approximately 30 people in attendance, no one else spoke regarding the proposed increase.
Council members Brian Waller and Rod Daniels were not in attendance, and the five members of council who were in attendance voted unanimously to pass the legislation.
Following the vote, Shoemaker make a motion to freeze the increase until it could be synched up with the city's scheduled increase to water rates, but following the meeting it was noted that the water increases are already in effect, and the vote for a freeze was unnecessary.
After three months of discussion and consideration, the Hillsboro City Council voted 5-0 to pass a resolution approving a 15-percent increase to sewer rates over three years.
Council members said following Monday's meeting that the increase will go into effect immediately. The rates will increase 5 percent per year for the remainder of 2011, 2012 and 2013.
Council's utilities committee began discussing the matter in June, and it was officially brought before council in July. Utilities committee chairperson Dave Shoemaker said that he wanted the legislation to have three readings before council so that Hillsboro residents would have the opportunity to express their opinions on the matter.
On Aug. 23 council held a town hall meeting where approximately 40 Hillsboro residents turned out to discuss the city's construction of the $17 million- wastewater treatment plant, Ohio Environmental Protection Agency mandates that made the upgrades to the plant necessary, and the grant dollars that have been secured to go toward funding the plant improvements.
During the council meeting the city circulated a letter from Gregory Smith, Chief of the Division of Environmental and Financial Assistance with the Ohio EPA that responded to an inquiry from the city regarding additional financing for the project.
Smith's correspondence was in response to a letter from city administrative assistant Kirby Ellison, who worked to secure the grant funding for the project.
In her letter to Smith, Ellison wrote, "The (Hillsboro) residents felt that the current economy prohibits any rate increases and they questioned why the city felt it was necessary to comply with the EPA. Ideally, these folks would like to meet with the director of the Ohio EPA to express their feelings. I am left with asking if there is any way the city can obtain a lower interest rate on any of our loans. Highland County has experienced severe job losses since 2009; this coincides with the pull out of DHL in Wilmington, Ohio. The unemployment rate average for 2008 was 7.4 percent, which rose to 15.1 percent in 2009, 16.15 percent in 2010, with a current rate was of June 2011 of 13.4 percent, which is significantly higher than the state of Ohio rate at 8.8 percent. (Though numbers were not immediately available for Hillsboro residents) there are 18,000 individuals receiving assistance at this time. We have a lot of homes that are empty and in foreclosure and we have 2,688 users at this time. Sewer revenue is down $27,951.38 from this time last year. New sewer taps are almost non-existent."
Ellison also noted that the WWTP renovations are 56 percent completed.
"Since 2004 total sanitary sewer and wastewater projects equal $20,561,136, funding from grants and 0-percent (interest) loans equal $8,603,821. Loans through DEFA will equal $11,957,314.
Smith responded that he was not aware of any type of "continuing financing" that would fund a project once a majority of it has been completed.
"In view of some of the comments that are being posed to you by the public, I must add that the wastewater system funding 'package' that Hillsboro officials have assemble is one of the most extensive combinations of grants and low-interest loans we have seen in practice. Since 2004, you have acquired well over $8 million in 0-percent interest and grants for infrastructure financing. This has resulted in extraordinary savings for your residents," Smith wrote.
Council voted in 2008 to freeze sewer rate increases until they saw what sort of funds they would have available. If the increase is enacted, base rates for sewer will be $25.42. If council had not frozen the increases in 2008, today the base rate would be $43.30."
"Ohio EPA is obliged to enforce the provisions of the federal Clean Water Act, which include requirements to eliminate overflows and plant bypasses that allow raw sewage to be discharged into waters of the state," Smith wrote. "All other communities in Ohio face the same responsibilities to protect the streams in their watersheds for human recreation and aquatic life. As you know, Hillsboro has had long-standing sewage collection system overflows and treatment works bypasses into Clear Creek, and Ohio EPA has documented these violations over two decades. While Ohio EPA could not 'waive' these violations, the agency worked closely with the city to develop a manageable timetable for a return to compliance. The city's implementation schedule saves money by completing the necessary wastewater system improvements without even greater expense. We regret that there is not more we can do to assist Hillsboro during these difficult economic times."
Prior to council's vote, Hillsboro residents Christine Kerley spoke on several issues, and told council that she was firmly against the increases because the residents could not afford it. Although there were approximately 30 people in attendance, no one else spoke regarding the proposed increase.
Council members Brian Waller and Rod Daniels were not in attendance, and the five members of council who were in attendance voted unanimously to pass the legislation.
Following the vote, Shoemaker make a motion to freeze the increase until it could be synced up with the city's scheduled increase to water rates, but following the meeting it was noted that the water increases are already in effect, and the vote for a freeze was unnecessary.
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