Water supplier talks to trustees

Trustees gathered to hear more about the possibility of a new water supplier.
By JEANNE STARMACK
VINDICATOR STAFF WRITER
BOARDMAN -- Trustees from Austintown and Boardman gathered Tuesday in Boardman to hear more about the possibility that Aqua Ohio could supply water to their townships.
Youngstown supplies water to Austintown and parts of Boardman. Trustees, however, have been wary about Youngstown Mayor Jay Williams' intentions in possibly forming joint economic development districts in the townships. In the JEDDS, workers would pay an income tax to Youngstown in exchange for a reduced or eliminated surcharge on water rates. But trustees are worried that Williams might use the threat of annexation to force the JEDDs on the townships.
Walter Pishkur, Aqua Ohio president, assured trustees that his company "will expand its service territory if expected of us." He said he believes ownership of the waterlines that extend outside the city "is in question," though a recent Mahoning County prosecutor's opinion said Youngstown owns the lines. He said he has also sought legal opinions.
Pishkur told trustees that a letter he sent to Williams proposing that the city sell its water system was no public relations stunt.
The letter was just an effort to help Youngstown, the Mahoning Valley Sanitary District, which Youngstown owns with Niles, and the townships meet their goals, he said.
Goals
Pishkur said he knows Youngstown wants to expand its tax base, the MVSD wants to sell more water, and Austintown and Boardman want to keep their own identity. He said he believes all parties can reach those goals. "That's the spirit in which I sent the letter."
Aqua Ohio says that if it buys Youngstown's system, it would become a significant property-tax payer, and Pishkur said Monday Aqua Ohio could make a deal to buy water from the MVSD.
In the letter, he said that he believes the sale of the water system would generate "in excess of 50 million in cash to fund key community projects."
Williams' response to Pishkur's letter, dated March 22, was a pretty swift "No."
Williams said he believes the system is too valuable to be sold. He did not attend Monday's meeting because of a prior commitment. His chief of staff, Jason Whitehead, attended for him.
Pishkur told the trustees Monday that the letter was not a formal offer to buy Youngstown's system.
Pishkur told trustees that for Aqua Ohio to provide water to the townships, they would have to settle the question of who owns the lines, work out an agreement with Youngstown or build new infrastructure.
He said rates would have to be negotiated based on capital investment and operating costs.
"If we own assets in your community, we're a taxpayer. There's tax benefits for your community," he said.
He also said that additional revenue from added customers could offset any capital investment and even lower water rates.
He told trustees that if they are interested, Aqua Ohio will prepare a plan and "put a cost to it."