Proposal would add a buck to water bill

The city has swallowed the past three water-rate increases from its supplier.
By PETER H. MILLIKEN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- City water customers are likely to face an 8.5 percent rate increase as they ring in the new year.
Water Commissioner Charles Sammarone told city council's public utilities committee Wednesday that he will recommend that increase to Mayor George McKelvey to take effect Jan. 1 to pay for capital improvements to the water distribution system.
The mayor and water commissioner have the authority to raise water rates.
Although no council action is required to raise the rates, the committee endorsed the capital improvements plan Wednesday. The mayor did not attend the committee meeting.
The average residential customer in the city pays $11.76 per month for water, and the average suburban customer pays $16.44 per month, taking into account the 40 percent surcharge for suburban customers.
The proposed increase would add $1 a month to the average bill for city residents and $1.43 a month to the average bill for suburban residents, according to water department figures.
The city water system serves Youngstown and Austintown and parts of Boardman, Canfield Township and Liberty.
"We think we have an obligation here not only to protect the system, but to invest in the system to do the right capital improvements and to do them in the most prudent way that we can," said Dave Bozanich, city finance director.
The water department hasn't raised rates since July 1, 1994, Sammarone said.
The Mahoning Valley Sanitary District, which supplies the city's water, raised its rates in 1999, 2000 and 2001, for a total of 9.2 percent, and the city did not pass these increases on to its customers, he said.
The water department, which has an annual budget of about $14 million, finished 2001 with an $88,000 surplus and will likely break even or have a slight deficit this year, Bozanich said.
The planned capital improvements include installation of new 16-inch mains under Tippecanoe and Raccoon Roads and replacement of the 200,000-gallon, 75-year-old Kirk Road water tank with a higher tower with a tank capacity for 1.5 million gallons to better serve new customers in the western part of Mahoning County, said Gene Leson, water department chief engineer.
The new tank is expected to cost about $2 million, he added.
Leson said he'd also like to replace two miles a year of the system's 780 miles of pipe, targeting areas where numerous water main breaks have occurred for replacement priority.
A state performance audit cited the lack of a capital improvement program in the water department, Sammarone said.
Fewer city customers
Sammarone told the committee that the city has lost water customers because of buildings being demolished and loss of industry in the city.
The city pumped about 30 million gallons a day 10 years ago, but now pumps 18 million to 19 million gallons daily, he added.
Most of the potential for expanded customer base and revenue is in the western portion of the city's service area, Sammarone said.
John Pierko, an engineer with MS Consultants, the city's water system consultant, said the proposed improvements would more than double the the city's water service area.
The city water system has 58,000 customer accounts, of which 32,000 are in the city and 26,000 in the suburbs.
"I see no reason for us not being more entrepreneurial and exporting a great product and service that we do have to offer. If we can expand into those areas and offer them a higher-quality water service at a better price and higher pressure, why not?" said Councilman Rufus Hudson, D-2nd.