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It has been nearly a month since Mahoning Valley Sanitary District representatives were invited to speak with Niles officials prior to a council meeting about a potential rate increase, and judges have issued their opinion.
According to a judgement entry electronically filed with the Mahoning County Clerk of Courts Wednesday, Mahoning County Common Pleas Court Judge Anthony Donofrio and Trumbull County Common Pleas Court Judge Sean O'Brien gave the go-ahead for a rate hike on MVSD customers from Jan. 1, 2027, to Dec. 31, 2029.
The MVSD provides bulk drinking water to the cities of Youngstown and Niles, as well as McDonald via a special contract, pulling the water from the Meander Creek Reservoir to more than 220,000 residents across the surrounding Mahoning Valley region.
The judgement states the rates per 1,000 gallons will increase as follows: $0.3660 per 1,000 gallons on Jan. 1, 2027; $0.0519 on Jan. 1, 2028; and $0.1993 on Jan. 1, 2029.
The judgement states the changes will remain in place until another rate increase is approved by the court or unless the MVSD, by the director's resolution, determines that lower rates will meet the MVSD's needs at the end of each year.
As part of its budget preparation process, the judgement states MVSD will maintain its rolling five-year financial plan and an annual water review as part of the process, no later than Oct. 31 of each year.
"In the event that the Board of Directors of the District determines to reduce the water rates reflected on Schedule A of Exhibit 1 the Board of Directors of the MVSD shall make a new rate determination for the fiscal year," the judgement states. "Commencing Jan. 1 of the year in which the water rate review was last conducted and shall thereafter put such rates into effect for that fiscal year with the approval of the Court of Jurisdiction."
The funds generated by the new rates may be used by the district for operations and maintenance, to provide sufficient maintenance funds or meet any loan obligations in the district, as well as finance any capital improvements.
The capital improvements referred to in the judgement are "The District’s Amendment No. 7 Revised to the Original Plan," which provides projects and their estimated project costs -- totaling $147 million.
Among those projects is the Meander Dam and spillway improvement project, which would involve the replacement of the spillway, the repair of the wing walls and stairway adjacent to the spillway, the repair of the emergency spillways, lighting repairs, road repairs, replacement of the rubber bladder and improvements to security and monitoring systems at the gate house.
The estimated cost of the project is $87 million, according to the document.
"Nothing in this judgment entry shall prevent the MVSD from coming before this Court at any time in the future, pursuant to Ohio law, to adjust its water rates in order to meet its obligations as contemplated here," the judgement states.
All rate increases or plan amendments are filed as formal petitions through a permanent court jurisdiction case, and the recent rate application was reopened in mid-2026.
Niles City Council members ahead of their Sept. 16 meeting heard from Mahoning Valley Sanitary District representatives, who proposed the bulk purchasing rate, which would be the wholesale cost to the city, not the final rate directly billed on an individual resident’s utility bill.
Brenda Duffett, MVSD’s finance manager and board secretary, said then that none of them want to increase the water rates because they understand any increase affects the customers and communities the district serves.
Duffett said the increase would help the district meet its obligations, maintain their water system and contribute toward a critical infrastructure project that has been years in the making, referring to the $87 million project.
The dam improvement project is the only one on the plan sheet being considered, said MVSD Chief Engineer Scott Verner, with the other projects that make up the $147 million listed as a general plan moving forward.
Niles Mayor Steven Mientkiewicz said Friday that the city cannot absorb the rate increases and remain fiscally solvent.
"Our rate model and rate study show a very moderate and incremental rate increase of only 2%," Mientkiewicz said. "Because of the MVSD increase, that's going to compound on top of ours, so that's where the brunt is going to be."
Mientkiewicz said the city was fortunate to not see a rate increase from them for the past decade, adding that when they do see one, it's because they don't incrementally increase year after year.
Mientkiewicz noted that, in the years since the court rejected a rate increase in 2023 due to inconsistent financial figures, MVSD officials trimmed all of their unwarranted projects and unnecessary projects.
"In this last go-round with the court of jurisdiction, they showed a rate model that reflected the true capital needs of the district," Mientkiewicz said. "It's hard to argue against that when even the City of Niles, we have our own capital plans, that are projects that must get done."
"And when you're not on top of that and when you don't, on an annual basis, improve that infrastructure, you will be left with larger issues in the long run," he added.