Proposal would add $7 to monthly bills
VERMILION — Residents could pay an additional $7 per month for wastewater services under a proposal introduced to City Council on Monday, Nov. 2, as the city faces millions of dollars in improvements required by environmental regulators.
The proposal would increase the city’s monthly Environmental Protection Agency wastewater fee from $9 to $16, a nearly 78% increase in that portion of the bill.
The percentage does not apply to the entire wastewater bill. The proposed change would add $7 per month, or $84 annually, to a residential customer’s costs. The city’s regular wastewater usage rates would remain unchanged under the legislation.
Council gave the proposal its first reading Monday. It must return for further consideration before it can be approved. No effective date has been established.
Why the increase is proposed
Finance Director Chad Angney told council the city faces substantial expenses to improve its wastewater treatment plant and collection system to meet environmental requirements.
Officials have discussed potential costs ranging from $70 million to $120 million, depending on the improvements required and which approach the city ultimately chooses.
Those figures are estimates, not an approved construction budget.
Angney said the proposed EPA fee increase was developed using a more limited financing scenario involving approximately $25 million in wastewater improvements.
The city also has two outstanding interest-free loans totaling approximately $6.9 million for wastewater-related engineering and planning work.
According to Angney, the city is paying approximately $900,000 toward those loans in 2026, with additional repayment obligations expected in the coming years.
The proposed fee increase would generate approximately $454,000 in additional annual revenue based on existing customer accounts.
Angney said the money would be dedicated to wastewater improvements and related debt payments rather than combined with the city’s general wastewater operating revenue.
He explained that separating the money would make it easier to track expenses and ensure the revenue is used for its intended purpose.
Mayor seeks affordable solution
Mayor Russ Owens told council he plans to meet with the U.S. Environmental Protection Agency on Thursday, Nov. 5, to discuss the city’s obligations and the financial burden on residents.
Owens said the city is evaluating improvements to its existing wastewater treatment plant along with possible regional alternatives.
Those options could include sending wastewater to another treatment facility rather than making all the necessary improvements to Vermilion’s existing plant.
No final decision has been made.
Owens said affordability remains his priority and that he wants to understand the construction costs, operating expenses and long-term financial impact of each option before choosing a direction.
The mayor also addressed his campaign promise not to increase the city’s regular wastewater usage rates.
He said that promise remains in place, explaining that the proposed EPA fee is intended to address debt associated with meeting environmental requirements.
Future costs remain uncertain
Council members also questioned how wastewater expenses are shared with customers outside the city, particularly those served through an agreement with Erie County.
Officials said the agreement is being reviewed as they consider how future costs should be shared.
Although the proposed increase would provide additional funding, Angney acknowledged that the total expense of meeting environmental requirements remains uncertain.
Further financial adjustments could be necessary depending on which improvements are required and how the city pays for them.
For now, the proposal would add $7 per month to the EPA portion of residential wastewater bills, without changing the regular wastewater usage rate.
Council is scheduled to meet again Monday, Nov. 16, when the legislation could receive additional consideration.