MVSD director to judges: We can afford the rebates

MINERAL RIDGE

The director of the Mahoning Valley Sanitary District says it has enough money available to repair the Meander Dam, repay $5 million to Youngstown, Niles and McDonald and “has plenty of money for the rainy-day fund.”

Director Matt Blair made those comments in response to a letter from two judges from Mahoning and Trumbull counties this week questioning the appropriateness of the refunds, which the MVSD approved last month.

Among the questions common pleas Judges Lou D’Apolito of Mahoning County and Ronald Rice of Trumbull County asked in the letter is: “Other than political reasons, why does it make financial sense to the MVSD to return the funds rather than be prepared for future MVSD needs, like dam repairs, etc.?” They also asked if there was a sufficient rainy-day fund.

The MVSD estimates the cost to update the district’s Meander Reservoir is about $28 million.

“We’ve set aside money for all of our projects,” Blair said, including the dam.

Another question from the judges: “If there are ‘surplus funds,’ is the MVSD over-charging for what it does?”

Blair said a reason the MVSD has a financial surplus right now is because projects such as the dam upgrade have not taken place as quickly as expected.

The MVSD considered various ways to use the surplus, such as lowering its rates to Youngstown, Niles and McDonald. “We felt the rebate was the best way to go,” Blair said.

The MVSD sells treated water from Meander Creek Reservoir to Youngstown, Niles and McDonald, which supply it to Girard, Canfield, Lordstown, Craig Beach and portions of 10 townships in Mahoning and Trumbull counties.

The MVSD voted last month to give Youngstown $3.7 million, Niles $1.2 million and McDonald $100,000 in surplus funds in three installments through the end of the year.

Read more about the matter in Friday's Vindicator or on Vindy.com.