Water Rates

Water is a precious commodity. Water keeps us clean and healthy, gives us green grass, and makes the flowers grow. We take water for granted. We expect it to be there when we turn on the faucet. We get really upset when that doesn’t happen.

Fortunately, in our town when we turn on the faucet, 99.99% of the time there’s water coming out of it. And the water that comes out is safe to drink. Sure, we’ve had our problems with taste and odor. But the water is safe, has always been safe and will continue to be safe. The taste and odor has improved and will continue to improve. However, those improvements come with a price tag. The materials used to treat the water are expensive. The cost of personnel, training, and certification continues to go up every year. Those are some of the reasons the water rates are going up 3% in 2001.

The main reason the rates are going up is because of the new water treatment plant itself. Rate increases were "built-in" to the bond financing structure right from the beginning in 1990. Just like when you buy a home and the bank finances it, the city has to have a way to pay for the facilities it needs, so we use bond financing in some cases. And just like the bank wants to know how you’re going to pay your house payment, the bond folks want to know how the city is going to repay their debt. Part of the promise to repay the debt is based on rate increases.

Yet another reason for the rate increase has to do with the 1998 refinancing of the bonds issued in 1990. Remember a couple years ago when interest rates dropped to almost a record low? Lots of folks were running around buying houses and refinancing their homes to take advantage of the low interest rates. Well, the city did the same thing with the bonds.

In order to take advantage of the low rates, the city refinanced the bonds used to pay for the water treatment plant. That saves the taxpayers money in the long run, just like you save money on your mortgage with a lower interest rate. In order to do the refinancing, a professional study of water and sewer rates was required. That study states, "Because of steady water consumption and sewer usage within the last two years, and the annual increases in operation, maintenance, replacement, personnel costs, etc., rate adjustments were required."

No one likes higher monthly bills. When comparing our rates to twenty-five Northeastern Ohio comparable cities, Alliance ranks eleventh out of the twenty-five. Our neighbor to the east, Sebring, has a minimum water and sewer bill of $78.40 a quarter. That breaks down to $26.13 per month. Currently, Alliance’s minimum monthly bill is $18.54. After the 3% increase in the water rates, it will be $18.84.

We can’t do anything about the rate increases. They were built into the bond repayment structure to pay for the plant itself. What we can do something about is the quality of the water. This Administration is committed to producing the best quality water possible and we will do everything in our power to deliver the quality product you have a right to expect.

As always, if you have questions or comments, please call 330-821-3110 or write the City Administration at 504 E. Main St., Alliance, Ohio.