CENTERBURG — According to Kleinfelder consultant Jack Jones, the village is in an “enviable position” regarding its sewer fund. Now the village must perform a balancing act to keep revenue, expenses, and reserves in proper proportion.
Jones and Paula Henrion presented the results of Kleinfelder’s 2023 sewer rate study to village council members on Monday. Poggemeyer Design Group did the 2018 rate study; Kleinfelder acquired Poggemeyer in 2020.
A utility is not designed to be for profit. The goal is to generate enough revenue to pay for operation and maintenance, debt service, and year-to-year improvements to the system.
The utility must also maintain reasonable reserves to cover unforeseen economic impacts, increased or decreased use, and seasonal fluctuations. Reasonable reserves are 25% to 40% of revenue.
In 2018, the fund had 79% of reserves. Projected expenses outweighed revenue for years 2018-21, with the village using reserve funds to make up the difference. That would have brought the reserve fund down to 41%, slightly higher than the recommended percentage.
However, actual revenue was higher, and expenses were lower than estimated. That left the 2021 ending balance higher than anticipated with reserves growing to 77.53% instead of declining as intended.
Expenses also exceeded revenue in 2022, but reserves increased because the village transferred $447,250 from its closed-out water fund to the sewer fund. For 2023, the starting balance is $1.1 million with reserves at 108%.
Now council has to decide how much of a rate increase, if any, to implement over the next four years to maintain reasonable reserves yet account for growth revenue and expenses. Too much of an increase creates hardship for users; no increase could potentially lead to a 20% to 25% increase in 2026.
The Kleinfelder study recommends a 3% increase for years 2024, 2025, and 2026. Village Administrator Terri Wise does not think 3% is out of line.
“I think that with the projects we have in mind and the projections over the next three years, 3% is reasonable,” she told council.
The study also showed that total sewer usage declined but flows recorded at the wastewater treatment plant increased over the four-year period. That means the village has a significant I&I problem (inflow and infiltration).
Inflow occurs when storm water gets into the system via manhole covers or residential downspouts. Infiltration occurs when groundwater gets into the sanitary sewer system through faulty connections, holes, or cracks. Both scenarios mean the plant is treating water it does not need to treat.
Councilman Rusty Griffith said the I&I numbers reflect the importance of tightening up the system, which the village has already started to do.
Wise agreed.
“With I&I, we need to make sure all of the processes that feed into this are tight,” she said, adding that that includes reducing expenses and making sure all systems speak the same language. “This is my top priority.”
Council members referred the study to the Public Safety & Public Service Committee for review and recommendation.
Reports
Wise reported that the Ohio Department of Transportation inspection of the Jerry Street bridge resulted in a load limit reduction from 35 tons to 20. Signs noting such must be posted within 30 days.
Councilman Tom Stewart said that according to Fire Chief Mark McCann, most engines max out at 21 tons, but the heaviest engine the Central Ohio Joint Fire District has is 19 tons. He will check with other departments who provide mutual aid to ensure their trucks can comply with the 20-ton limit.
The inspection also noted a life expectancy of about 10 years for the bridge.
Regarding Intel, Wise said information shared by the Area Development Foundation shows that the top categories for growth in the county are industrial, commercial, and single- and multi-family housing units. Charting it out, Wise said the village will be affected most by single- and multi-family housing.
“The fact that we are going through our zoning is a thumbs up,” she said.
She is, however, concerned about enforcement.
Other administrator activities Wise reported:
•The TAP (Transportation Alternative Program) grant for downtown improvements is resubmitted.
•She is working with school officials and Knox Public Health on a Safe Routes to School grant.
•Del-Co will do camera inspection of pipes on South Hartford Avenue from Cherry Alley to Dally Street. If time permits, Del-Co will move to Landrum. Wise said this will help resolve I&I problems.
COJFD: The new medic was delivered one year early. The department is hiring for a fire safety inspector and full- and part-time staff.
Business Development: Plans continue for the Midway Welcome Station, signage along the Heart of Ohio Trail, and new playground equipment at Memorial Park.
Regarding zoning, the village anticipates receiving the final draft by Feb. 27. A public hearing is set for March 27.
Legislative action
•Council members amended and then passed an ordinance noting parking changes in the village. The amendment removed the section on eliminating parking on the west side of South Hartford from Church Street south to the end of the existing curb area. The changes are as follows:
A. Eliminate the handicap parking spot at the corner of Willis Street and West Main Street and to further eliminate all parking in said location so the line of sight from Willis Street entering onto West Main Street is not obscured.
B. Establish a handicap parking spot on the east side of South Hartford Street at the intersection of West Main Street beside the bank building.
C. Establish a handicap parking spot on S. Clayton Street near the intersection of West Main Street by the library
D. Adding language to the stop light located at Preston Street and Main Street to include “no turn on red” during school hours.
•Authorized the second payment to Mid-Ohio Regional Planning Commission to participate in the Trail Town initiative
•Approved transfer $9,700 from the general fund to the South Hartford Avenue Improvement Phase II fund
•Authorized the fiscal officer to acquire property, casualty, and general liability insurance for the village
•Approved supplemental appropriations
