Bill holiday unlikely
Marysville officials are saying that while they will not discontinue service to any water customer during the current health and economic crisis, they will also not offer customers a price break for water and sewer use.
At a recent finance committee meeting, the group discussed the “Utility Bill Holiday” passed by the City of Westerville. In March, Westerville announced it would provide water and sewer service free of charge for that month. On the bill, due April 15, residents and businesses had a $0 balance for March service.
City Finance Director Brad Lutz said he would not advise any decision that would eliminate city revenue.
He said administration discussed that option, but were discouraged to follow through with it. Lutz said he met with financial advisors who would be helping the city sell municipal bonds for the proposed water plant, set to begin construction later this year.
“It was made very clear that anything we did policy-wise, could and I emphasize could, have an impact on our bond rating,” Lutz said.
He said a change in the bond rating would impact the city’s interest rate and the long-term cost of the water plant.
City Manager Terry Emery said the city is already working to help residents in need.
“Right at the very beginning, we announced there would be no disconnects,” Emery said.
Lutz said there are opportunities for help, but the need has not really hit the community.
“I don’t believe we have been inundated, in any way, with people asking (for assistance),” Lutz said, adding, “We will work with anyone to help them get through this process.”
Lutz said he feels helping individual users is the better option to help citizens long term. He added that if the crisis lasts, the city could come back and discuss a utility holiday, but for now, “I feel like we should stay the course.”
Councilmember Mark Reams, who sits on the city’s finance committee, agreed.
“I do prefer what we are doing to what Westerville is doing,” Reams said.
Those residents needing help can contact the utility billing department at (937) 645-7350, option 1, or by e-mail at utilities@marysvilleohio.org.
Officials said they do not know how long the economic impact of the coronavirus pandemic will last. Lutz said the COVID-19 pandemic would have a significant impact on the city’s finances and the finances of nearly every resident, though he said there are “simply too many variables to make anything resembling an educated guess” about how significant the impact would be.
In a note to the finance committee, Lutz said city officials should assure residents they will, “continue to monitor the economic conditions on a weekly/monthly basis in order to head off any negative impacts the City may experience.”
Council Member J.R. Rausch, who also sits on the finance committee said there is “going to be a lot of trickle-down effects.”
The finance committee said it will begin looking at reducing the city’s recommended reserve from $6-million.
“If this is a rainy-day fund, then we are in a monsoon,” said Rausch.
Reams said he is O.K. reducing the reserve fund as long as that is part of a comprehensive economic plan.
“Part of our response is going to be where are expenses that can be delayed and the other part is how do we use our reserves,” Reams said.
Rausch agreed, noting that it should be part of a two-year conversation.
Emery said he appreciates council’s willingness to have the discussion, saying city administrators agree, “this is as bad as we have seen it.”
“If council can give us a little bit of direction as the months go on and we start to see some things, it would be helpful to know where you are at,” Emery said.