Lorain to balance budget with revenue adjustment

LORAIN — Lorain will pass a balanced budget next Monday, thanks to a revised revenue estimate for the city's water pollution control fund. The fund, which collects its revenue in part from the $9 flat sewer fee charged to rate payers each month, projected a $2.7 million deficit going into permanent budget talks this year. That deficit comes after years of spending against an $18 million cash surplus in the fund since lowering the flat rate fee in 2020. During a Finance and Claims Committee meeting Monday evening, Auditor Anita Harper offered Council a temporary reprieve from the looming deficit: She adjusted revenue estimates. After removing $500,000 in raises and new positions and adding in $600,000 in revenue estimates underprojected by the department compared to prior years, it still left the fund with a $1.6 million deficit. To temporarily fill that gap, she adjusted the revenue estimates to bring the line item into the black, but left Council with a caution that the adjustment is not permanent. The estimated revenue increase, whether through a later hike in the flat sewer fee, through additional rate payers or other means, must be realized in the next several months, she said, otherwise she will readjust her estimates back down and force Council to de-appropriate the funds. De-appropriating funds would mean delaying or cutting projects or making other expense adjustments to make ends meet. That fund is at a tipping point, Harper said, and Council must decide how to keep it afloat without carrying a high cash balance on rate payers' backs versus letting it fall into the negative and leave the city unable to maintain its sewer system. The city has about 26,000 in-city rate payers and 800 outside rate payers. Households receiving water or sewer service outside the city pay a higher usage rate than in-city residents. Of those accounts, about 3,400 are delinquent — racking up a total of about $2.8 million owed to the city for utility service. Safety/Service Director Rey Carrion said the city may look to hire a third party to go after delinquent accounts, as the attorney general's office will not pursue utility charges. He agreed with the assessment of Councilwoman Mary Springowski, D-at Large, that the budget was not just the mayor's or Council's, but everyone's responsibility. He referenced a proposed housing development on the west side, slated to bring 57 duplexes as part of The Cottages at Lighthouse Point, as ranch-style homes with basements marketed toward individuals 55 and older. The homes, 114 units in total, will not be age restricted and are expected to cost upwards of $300,000. That, and several other housing developments in the works, will bring more rate payers into the city and increase revenue naturally. Staff continue to pursue economic development with the opportunity to bring large businesses — with large water and sewer usage — into the city as well, he said. A committee meeting is set for 5:30 p.m. April 6 to discuss the water pollution control fund and potential rate changes. It will hold a special call Monday to pass a permanent budget for 2026. It must pass that budget by March 31. Contact Carissa Woytach at (440) 329-7245 or cwoytach@chroniclet.com.