Perrysburg staff proposes 2% annual water and sewer rate increases with AWWA alignment

City staff and rate consultants presented a five-year water and sewer rate model that recommends 2% increases each year with a planned reexamination after three years and a future shift toward American Water Works Association (AWWA) rate practices.

Staff summarized impacts using representative examples: a minimum residential water bill (0–300 cubic feet) would rise from $32.40 to $33.05 (a 65¢ increase), a 1,000-cubic-foot water user would see a $2.05 increase to $110.02, and minimum sewer charges would move from $25.85 to $26.37 (52¢). Staff said combining the two results in an illustrative $1.17 monthly increase for minimum users and about $3.79 for larger users.

The presentation emphasized drivers behind the increases, including purchased water costs from the City of Toledo (a major portion of operating costs), planned capital improvements, and potential EPA-driven projects such as the SSO elimination plan. Staff said the study uses current fund balances to limit near-term increases but that long-term capital needs (tens of millions over decades) will continue to influence rates.

Consultants recommended a clearer separation of fixed and variable charges and alignment with AWWA M1 guidance to calculate fixed charges based on overhead components (billing, meter reading, insurance) and to consider tiered volume charges to shift more cost to larger users. After reviewing redline and clean ordinance exhibits and requesting comparative threshold data, the committee had no objections and agreed to move the two rate ordinances forward for the normal three-reading process.