Water Rate Development

Understanding the 10-Year Cash Flow Summary

This chart shows how we plan to manage the Water System’s finances over the next decade to fund operations and major infrastructure projects. This chart represents a 5% rate increase in 2026, 4% from 2027 through 2029, and 3% for the remainder of the planning period.

Bars represent annual cash inflows and outflows:

Capital Improvement Projects (CIP) – large investments in system upgrades.
Operating Expenses – day-to-day costs.
Debt Service – payments on existing and proposed loans.

Funding Sources:

Proposed Revenue – customer rates.
Grants and Loans – external funding to reduce the burden on customers.

Lines represent cash reserves:

Red dashed line = our cash target, the minimum reserve we aim to maintain for emergencies and financial stability.
Green line = our estimated cash balance each year.

What does this mean?

In the early years, we are investing heavily in critical water projects, which keeps our cash balance below the target. However, as projects are completed and revenues stabilize, our cash position improves steadily. By the end of the planning period, we reach the target reserve, ensuring long-term financial health without sudden rate spikes.

Median Rate Projections

To provide meaningful context for our rate comparison, we used the Ohio Environmental Protection Agency’s (OEPA) most recent rate survey to establish a base year median for residential water and sewer bills across the state. This survey offers a reliable benchmark for evaluating how our rates compare to those of similar utilities.

From that base year, we projected the Ohio median forward using an assumed annual increase of 4.5%, which reflects historical trends in utility rate growth across the state. This projection allows us to compare our planned rate path to a reasonable estimate of where the statewide median is likely headed over the next decade.

While our rates are initially higher than the projected median, they remain stable over time and eventually fall slightly below the Ohio median by the end of the planning period.

Affordability and Water Rates: Staying Below the National Benchmark

This chart compares our projected average residential water bills over the next 10 years to the commonly accepted affordability threshold of 2.5% of median household income (MHI).

Despite planned rate increases, our projections show that the average sewer bill remains well below the 2.5% threshold, hovering around 1% of MHI throughout the entire period. This demonstrates that our rate structure is not only financially sustainable but also affordable for the majority of our customers.

By maintaining rates within this range, we’re ensuring that essential water services remain accessible while still funding critical infrastructure improvements and meeting regulatory obligations.

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