The Village of Richwood Council voted to increase the water rates for residents by 2% annually to cover operating expenses.
Currently, the baseline for water bills in the village is $23.52 for the first 2,000 gallons. After that, residents are billed $4.75 per thousand gallons.
Craig Mescher, a project manager at Access Engineering, gave a presentation about the projection of revenues and expenses of the village’s water system with yearly rate increases from 1% to 2%.
“Unfortunately, inflation is not moving at 1% or 2%. The cost for the plant from what we had given you guys last year is going up, and then last year we were still planning on you guys getting half a million in grants from (Ohio Public Works Commission) OPWC, which we were not able to get for you,” Mescher said.
He added that it is easier to receive funding for streets than sewer and water.
The village would break even if the council voted to raise rates by 1.25% each year. Mescher recommended the council approve the 2% annual increase “because quite honestly then you … can reevaluate this eight to 10 years down the road.”
“You’ll know what you’re going to do with the water tower. You’ll know what you’re going to do with other things,” Mescher continued. “You can project what your future costs are.”
The projected numbers for the water plant project will be submitted to the Ohio Water Development Authority.
“They’re going to look at where these numbers are and they theoretically come back to you and say, ‘You need to adjust your rates more before we’re going to let you borrow money for anything for projects,’” Mescher said, adding that money won’t be lent to municipalities that have “revenues in the red.”
Mescher advised the council to start the increase of rates by the first of the year. The resolution would require three readings.
In other news:
The council went into executive session to discuss administration and employee compensation and wages. As a result of the closed session, the council agreed to have the solicitor amend the ordinance for pay scales to reflect an increase of 5% for village employees. With the 5% increase, councilmembers would receive $3,150 each annually. The mayor salary would increase to $5,250 and the expense allowance paid as salary to the mayor would increase to $1,575 annually. The chief of police/village administrator would receive a salary of $78,215,55 annually. A police lieutenant would be paid $24.65 hourly and a police sergeant would be paid $22.62. Officers wages would vary based on the following length of employment and shift: starting wage for a full-time officer is $18.64 per hour, 12-month employment of a full-time officer is $19.83 per hour, 24-month employment of a full-time officer is $21.02 per hour, starting wage of a part-time officer is $16.13 per hour, after one-year part-time officer is $17.31. The billing clerk/fiscal officer would increase to $59,551.80. The village supervisor would receive $19.96 per hour, the village services maintenance position would receive $18.56 per hour, and village services position would receive $17.39 per hour. The permanent part-time park position would receive $15.79 per hour. The water and sewer operator of record would have a salary of $63,123.30 annually.
The council also agreed to increase the village inspector’s pay to $7,500 a year and to move Officer Colton Brown from part-time to full-time pay with benefits. Three readings of a resolution reflecting the changes will take place.
Gail DeGood-Guy informed the council that the Somersville Evangelical Friends Church, 27522 Route 31 in Somersville, is offering a free dinner to veterans, law enforcement and their families on Nov. 7 from 5-6:30 p.m. The menu will be homemade beef and noodles, mashed potatoes, rolls, green beans, cookies, coffee, punch and water. The church asks that attendees call ahead at 937-935-2041 or email kenperdue@embarqmail.com so it can prepare enough food. VFW is hosting a free brunch for veterans and their guests on Nov. 11 between 10 a.m. and noon.
The council approved a quote of $49,500 from Ag-Pro for a brand new John Deere 330G skid steer.
The council also approved the editing of Ordinance 10252021 to include certain ordinances and resolutions as parts of the various component codes of the Codified Ordinances of Richwood, Ohio and declaring an emergency.
The village approved the first reading of Resolution 10012021 about the village’s temporary appropriations for the 2022 budget.
The council next meeting is scheduled for Nov. 8 at 7 p.m.