New rules for utility rate changes heading to council

FINDLAY — Findlay City Counci's Water & Sewer Committee voted unanimously on Wednesday to recommend approval of new rules for making water and sewer rate changes. In the hour-long meeting, the committee reviewed changes to the rules initiated last year. Members of the committee include Grant Russel, R-at-large, chairman; Randy Greeno, R-at-large; Josh Palmer, R-7; Dan DeArment, R-4; and Brian Bauman, R-5. Under the new rules, the city's service-safety director maintains the authority to change water rates and council will determine sewer rates. Both will be based on required performance reviews of the fund. In the future, any proposed rate changes would be gauged against fund performance without them. There is no proposed rate increase at this time, said Service-Safety Director Rob Martin on Wednesday. Martin said the changes to the rules also updated references to state law and cleaned up language details. The process will require city administrators to provide an analysis of the water and sewer fund each year to ensure the fund can support operational demands and capital improvement needs while keeping water rates "sensible." After each year's review, the committee will be required to make a recommendation to council on the rate requested by the administration. Every five years, the new rules would also require administrators to hire a third party to review the rates. Extending the five-year interval would require a committee recommendation and the full support of council. The reviews are meant to avert unexpected rate changes — and the accompanying public backlash — that occurred with the 2024 water rate hike. A 50% increase in the city's water rates took effect on Jan. 1, 2024. The last water rate increase by the city was in 2011. Martin said the 2024 rate increase worked to right the water fund. He said city administrators were "spot on" with the projections. "It's all falling in line. The dominos are falling where they need to be," Martin said. In September, the committee voted to recommend no rate changes to city utilities in 2025, including both water and sewer.