• Council Enacts Utility Rate Relief

    by  • July 13, 2010 • Life in Galion, News & Views, The Future of Galion • 8 Comments

    One year ago tomorrow, Galion City Council met at the Franks Pavilion in Heise Park in front of some 400 of their constituents as they considered a measure to increase utility rates. As GalionLive noted at the time, “tension ran high and emotion was palpable” that night, as some 10 members of the public verbally and aggressively challenged the wisdom of such a move. Although Council tabled the measure that evening, the planned hikes were passed some months later.

    Tonight, in front of a much smaller and certainly quieter audience, Council reduced those rates substantially, effective August 1. The water rate hike will be reduced from 6.5% to 1.5%, and the sewer rate decreased from 12% to 7.25%. This decrease will carry forward during the subsequent planned increases in January 2011 through Janury 2014. A chart provided this evening by Councilwoman Roberta Wade outlines these reductions:

    City of Galion – utility rate comparison 1.2.3.

    It should be noted that these measures place the rate hikes at a fraction of that called for by the original Arcadis study (the top section of the chart).

    When the first reduction ordinance was introduced this evening, City Manager Gene Toy outlined the work of the Finance Committee and the City Manager’s Office over the last year to reach this result. That work included a through look at projects which, according to Toy, would be “nice” but which the City cannot presently afford. Wade shared that the present reductions should bring some immediate relief, and that once the Westmoor Project is completed, the sewer rate might be able to be reassessed for another possible reduction.

    Council President Gail Baldinger noted that in a meeting with Ohio Auditor representative Belinda Miller, it was discovered that the sewer rate is tied to numerous loans entered into by the city some years ago, and that until that debt is removed, the rate cannot be lowered much past its present figure. He also shared that the rate reductions still take into account a three-month carryover in the affected accounts. Councilwoman Cathy George then shared her thanks to the Finance Committee and City Manager for their work, and also said that it was important that City residents realize that some “sacrifices” were made to hold rates down.

    In response to a question by Councilman Dave Smith prior to the vote, Toy said that present City services would not be negatively affected by the measure. Councilman Dr. Thomas Fellner questioned the ongoing yearly rate hikes, and Councilwoman Wade responded that as a five-year plan would have to be created at the end of each year, those numbers would be regularly analyzed. She added that there are built-in variables in the Westmoor project, and that it is entirely possible that additional savings and income can be realized upon its completion.

    Both measures (water and sewer) passed unanimously (Councilman Walter Keib still being absent due to heart surgery), with the water ordinance being moved and seconded by Wade and Councilwoman Shirley Clark, and the sewer ordinance by Wade and Fellner.

    The only other ordinance on the Agenda was a second reading of an ordinance vacating a portion of Center Street, a section Toy referred to as “…unused, unimproved and unneeded.” That measure passed unanimously, as did a resolution appointing Sharon Baldinger to the Regional Planning Commission, replacing the retiring Bob Cerar.

    Committee report highlights follow:

    Finance

    • Year-to-date income and expenses are “right on target,” according to Finance Director Audrey Brodzinski.
    • In response to a question by George concerning the large General Fund balance ($4.4 million) and the Street Fund balance (a negative balance exceeding $1 millon), Brodzinski shared that the City cannot simply “take” from one account and add it to another; the analogy she used was that each account should be thought of as a separate city business. She continued that the City does take approximately $53,000 a quarter from the General Fund and place it in the Street Fund, which, as Wade quickly added, basically keeps that fund from getting into a even worse position. All three discussed the possibility of working with Belinda Miller to look at possibly increasing that transfer amount each year.
    • The new policies for payment of utilities were quickly mentioned; Wade indicated that this would be part of the next Finance Committee meeting.

    Laws and Ordinances

    • After being introduced by Committee Chair George, Galion Police Chief Brian Satterfield discussed the possibility of removing sections of the Galion Codified Ordinances which duplicate those in the Ohio Revised Code (but keeping any which are Galion-specific). Satterfield shared that if an individual is charged for violating a city ordinance, the cost of any imposed jail time (usually for a suspended sentence) is charged to the city; removing the duplicative city ordinance might therefore save the City money. That shared, he also said that fine revenue only comes to the City if the crime is charged under a local ordinance. It was agreed between George, Satterfield and City Law Director Reese Mills that the latter would look into what this move might entail.
    • City Building Inspector Matt Ross discussed a table of building fees he has developed by looking at what is charged in Mansfield, Richland County and Wooster; he will be making a final recommendation to the Committee.

    Planning and Zoning

    • Vacation of any alley off of Cherry Street appears to be on the fast track after the affected property owners agreed to measures that would eliminate any future questions on the vacated property, including access.
    • The cleanup of the former Eagle Crusher Plant on South Market Street has reached a stage where all hazardous material has been removed. Future cleanup depends on getting the parties to continue their efforts; no future EPA action is expected in the short term.

    Parks and Recreation

    • Committee Chair Clark indicated that there has been interest in having the City re-sand the horseshoe pits at Heise Park; this will involve minimal time and expense, and the City Manager is looking into doing that.
    • The grant received for new equipment at East Park has been received.
    • Clark asked about the pool of water on East Street near Darlene’s, and what might be done to drain/improve the area. Several Councilpersons noted that the City was stopped from improving the area some years ago as it is considered a wetlands.
    • Thanks was extended to Galion Rotary for the fireworks display.
    • The East Park Craft Show was a success.
    • The question has been raised about possibly painting the cabin at East Park.

    In his comments, City Manager Toy discussed a meeting concerning progress on the Westmoor sewer project, and noted that the Covert Manafucating expansion was moving forward. He also stated that demolition of the former Atwood Manor nursing home will begin on July 19, and should be completed within a week.

    The only citizen speaking to council addressed the question of smoke from what might be “legal” fires making life miserable for neighboring property residents; after some discussion, Laws and Ordinances Committee Chair George indicated that her committee would look into the issue.

    Photo: Councilwomen Shirley Clark and Roberta Wade, taken at the July 14, 2009 Council meeting at Heise Park.

    Related posts:

    1. Utility Rate Increases Enacted by Council
    2. Council Tables Rate Hike
    3. Baldinger, Wade Elected as Council President, Vice President
    4. Rate Reductions on the Horizon
    5. Council Raises Water, Sewer Rates; Tables Electric Rate Increase

    About

    • Anthony

      As always, excellent reporting, may have missed your calling Thomas.

      Good news these rates are being rolled back some what.

      Were the rollbacks just for residential or did it include business/commercial rates as well ?

    • admin

      The decreases in the utility rate hikes were across the board — for both residential and business/commercial. Chamber President Joe Kleinknecht was present and noted that the reductions would have a substantial positive impact on local businesses.

    • Anthony

      Well a definite round of applause goes out to Roberta Wade. Without her tireless efforts in this effort it would have ended a long time ago.

      This is just one battle so far with several more to go.

      The war over the city electrical grid will be coming soon as it can not wait. Galion has gotten itself in a real jam with disasterous contracts signed with AMP that should have never happened.

      Galion made progress tonight, for the first time in a very long time.

      All Galionites should give a shout out to Roberta, well done !!

    • SDT211

      Well it is a small start to say the least or as stated one battle won in a very long war.

      Citizens of Galion these rates are still double if not triple the rates in surrounding communities so do not let the council off the hook for more rate reductions. They threw you a small bone when what you need to survive is some actual meat!

      They still have done nothing with the electric rates that have exorbitant fees attached to it that is clearly showing a profit but yet they only want to focus on the water and sewer rates.

    • Russell Henkel

      NOW THAT WE HAVE CITY COUNCILs ATTENTION WE NEED TO WORK ON ELECTRIC RATES,NOW AND FAST.

    • Michael Richart

      For those that attended last nights council meeting, you were witnesses to what a city council is there for. TO REPRESENT THE PEOPLE…. My hat goes off for Roberta Wade, Sherley Clark, who stood against the former council that was planning to increase water and sewer rates to 19% for each for the next several years. I would also like to say, Thanks to our current council president for he realized early on last year that things were not quite adding up… Galion is starting to go the right direction. This is a start. With the help of our city manager, these folks along w/ Dr. Fellner will get up to were Galion will be “THE” place to live.

    • Jeff Lehart

      I do give two thumbs up to Roberta. As was pointed out we are still 2 to 3 times higher than our neighbors. The BS Cathy George spews out about not transferring funds was just done to cover “administrative costs” not more than a week or so ago and was taken from water, sewer and electric so that BS don’t sell here. There is also another problem on the horizon with electric rates. Got sent an article today from the Chicago Tribune http://www.chicagotribune.com/news/local/ct-met-coal-plant-20100710,0,3046966,full.story This article wouldn’t mean a whole lot except that AMP Ohio is who we buy our power from. Galion has 9.952 MW share of the Prairie State plant. AMP as a whole has the largest share of the plant, divided among its members. This could have disastrous effects on the city and nobody is addressing the issue.

    • Anthony

      Jeff,

      You are right on the money.

      Galion must buy this amount everday. It’s not an option to buy, it’s a must to buy requirement.

      Not only are the rates substantially higher than what Galionites are being gouged on, Galion has two other contracts that the city is forced to buy wattage they will never use.

      THIS IS A FINANCIAL DISASTER COMING ! ! !

      What city council members did this to Galion ?