SHILOH – Shiloh Village Council passed an ordinance Tuesday evening that will add an additional $3.75 per month to all village water customer bills, as well as an annual 3% increase to village water rates, effective Jan. 1, 2024.
“People from way back when they put the water lines in and put in the sewer system never looked ahead to put some money aside, even a quarter a month,” Shiloh Mayor Charles Reeder said. “That’s why we’re stuck with it now. We’re paying for it.”
The increases included in the ordinance’s verbiage will be effective from 2024-2026.
The ordinance replaces language previously passed in Ordinance 2023-11 at the July 25 council meeting which deleted the automatic 3-percent annual increase to village water rates.
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Reeder said that the annual village water rate increase of 3 percent was in the original language of the water supply revolving loan account (WSRLA) that the village entered with the Ohio Environmental Protection Agency (EPA).
Council passed a resolution to enter into the loan contract with the EPA at the July 25 council meeting.
“We’re stuck with it (annual water rate increase),” Reeder said. “We had to pass this.”
The loan will provide the remaining $1.5 million in funding needed to complete the $3 million, three-phase water project. That project includes water meter installations for all Shiloh customers; fire hydrant and valve replacements; and dismantling the old water tower and replacing the Main Street water line.
“If we don’t pass this, we lose the whole water line project. A lot of hard work and grant money would’ve been lost.”
SHILOH MAYOR CHARLES REEDER
An Ohio Public Work Commission award contributed $499,000 to the project and Richland County commissioners committed to give $500,000 from its share of American Rescue Plan Act (ARPA) funds.
Commissioner Tony Vero was in attendance for the meeting and came prepared to field any questions regarding the water project.
“Updating water infrastructure is an acceptable use of funds under the American Rescue Plan Act, so we were happy to do it,” Vero said.
Councilmember Chris Donnersbach asked Vero if the village would be eligible to apply for further grant funding while the water project is ongoing.
Vero said the money came from the county’s $23 million ARPA pool.
“We still have some of that money left, but we have a major wastewater project coming in the Bellville/Lexington area,” he said. “So while we have money left, we are setting a good portion of that aside to upgrade the infrastructure in the southern part of the county.”
Availability of additional funds to Shiloh may depend on how much the wastewater project in Bellville costs. That work near I-71/Ohio 97 is being done as commercial and residential growth is expected.
The $3.75 monthly increase to village residents’ water billing will be used towards loan repayment, which will occur over a 30-year period beginning July 1, 2025.
Hall asked that it be added to the council meeting minutes that after three years, the legislation be revisited and for the 3-percent annual increase to be stopped until council has a chance to determine its necessity moving forward.