Judges reject water rate hike

Proposed MVSD increase targeted improvements for 200,000 users

WARREN -- The judges who oversee operations at the Mahoning Valley Sanitary District have rejected rate increases that district officials wanted over the next three years to fund improvements at the dam and spillway at Meander Reservoir.

In a four-paragraph decision signed by Judges Anthony Donofrio of Mahoning County and Judge Ronald J. Rice of Trumbull County and filed Thursday afternoon, the judges indicated they did not get enough answers to approve the rate increase.

The increases sought would total 33 cents per 1,000 gallons and would be billed to Youngstown, Niles and McDonald, and that cost could be passed along to other customers. Youngstown and Niles resell the water to their residents and to Girard, Canfield, Mineral Ridge, Lordstown, Craig Beach and portions of 10 other townships, including about half of Boardman.

"Based upon the evidence submitted, the inconsistent financial figures provided and the best interests of the public, the request is hereby denied," they wrote.

On Dec. 21, both judges sat in a Trumbull County courtroom to listen to testimony from MVSD's chief engineer and its plant operations manager -- who couldn't answer Rice's questions about exactly how much cash the district has on hand.

Rice noted actual MVSD water users number about 200,000 throughout the Mahoning Valley.

In responding to MVSD legal counsel Thomas Wilson's questions, plant manager Tom Holloway said a rate increase of 11 cents per 1,000 gallons over each of the next three years is needed to pay for a $49 million project to refurbish the dam and spillway at Meander Reservoir, upgrade a tank that separates the solids from the water, and replace 3,500 feet of a 36-inch transmission line that brings water to the West Side of Youngstown.

The judges in their order also said the MVSD must provide to them annual audited financial statements for their review. Rice at the hearing had mentioned that this hasn't been done in several years.

Also, the judges asked the district to follow the law and establish and operate a sanitary district advisory council. Ohio Revised Code 6115.104 dictates the members of this council should be made up of member MVSD communities of Youngstown, Niles and McDonald and its purpose would be to "annually review and evaluate the receipts and disbursements of funds by the board of directors during the preceding calendar year." The advisory board would also "review, evaluate, and make recommendations to the board of directors regarding the operation, policies, programs, and improvements of the district."

A phone call was made to Wilson to seek comment about the board's next move, but a secretary at his office said Thursday he was away at a seminar.

Wilson, at the hearing, stated the district last raised its rate for water, with the agreement of the member communities and the order of the court, on July 1, 2015, noting that rate has remained at $2.10 per 1,000 gallons of water.

Rice, wondering why the district is going after the cash option rather than looking at grants and loans, asked both Holloway and MVSD chief engineer Michael McNinch how much money the district has on hand.

Both men gave various answers ranging from $6 million to $33 million, but Rice said he wanted to refer to audited figures by the state because he "didn't trust" figures only supplied by MVSD officials.

The MVSD, established under the Ohio Revised Code, formed in the 1920s to provide clean drinking water to much of the area's population.