Hike approved to avoid court battle

CHESAPEAKE – It’s doesn’t sound like something they would like for Christmas. But as far as the Lawrence County Commissioners are concerned, it was the best choice they could make for the 5,000 customers of the Union-Rome Sewer District.

Starting immediately those customers will see their rates go up to $37.93 a month, which almost $9 more than they have been paying since the late 1980s.

At its Tuesday meeting commissioners voted to increase the rates to stave off a lawsuit with the Ohio Water Development Authority that wanted to jump the rates up to possibly at least $50 a month. OWDA had filed the suit this spring in Franklin County Common Pleas Court after the county had defaulted twice on its loan payment this year on the recently completed sewer plant in Chesapeake.

“Although those rates are more expensive than when we began, it won’t allow a judge in Columbus to decide what our rates are in Lawrence County,” Commissioner Jason Stephens said.

Originally the new plant, whose construction was mandated by the EPA, was to have cost $14 million with $5 million of that coming from federal funds the commissioners said were promised to the county.

When that funding fell through, the county tried to get $5 million in federal stimulus funds, but was also rejected.

After Hurricane Katrina construction costs escalated, putting the project debt at $24 million. That obligation was incurred as the county was still paying off debt on the older sewer plant.

Because of the county’s defaulting, the OWDA demanded the county dramatically increase its rates, originally proposing a $72 a month fee.

“The OWDA was prepared to file suit if we didn’t act on the rates,” Stephens said.

OWDA next proposed a $46.99 rate. The county countered with $37.93 and won the OWDA’s approval. In 2012 monthly rates will go up to $48.99 with about an additional two dollars each subsequent year through 2015.

“It is an opportunity to avoid something that could be devastating,” Stephens said.

Commissioner Les Boggs voted against the increase saying the fees should have been increased earlier at a lesser rate to avoid the current situation.

“It is not a reasonable increase and will place a hardship on many users of the Union Rome Sewer District,” he said after the meeting. “I don’t feel we had exhausted exploring all our options and in the process the state filed a lawsuit. If we had (raised the rates) when we built the sewer system in smaller increments, if we had done that three years ago, it would have been a lot better for the people.”

With the rate hike OWDA has agreed to extend the time on the county’s debt to 30 years at one percent interest, compared to the original terms of 20 years at 3.25 percent interest. The county will start payments in 2013, just as it finishes paying off the older plant.