Friday, January 28, 2000
Water rate raised to pay legal bills
BY STEVE KEMME
The Cincinnati Enquirer
HAMILTON — Officials have decided to raise the city water rate by about 10 percent, to offset $1 million in legal expenses fighting a lawsuit by Butler County over water prices.
Hamilton's average residential monthly water bill will rise from $14.05 to $15.37, an increase of $1.32. City Council voted 5-2 Wednesday to raise the rate. Councilmen George McNally and Richard Holzberger voted no.
This is the second 10 percent rate increase in six months; the last occurred in July. City officials attribute both increases to expenses connected with the city's legal battle with the county.
The money from the rate increase is also needed for capital improvements and maintenance, said Mark Brandenburger, assistant city manager.
The city's 1999 water budget was $14.9 million.
Butler County has bought most of its water from Hamilton since 1989. The county sets the water rate for county customers.
Two years ago, the county sued Hamilton, accusing the city of charging the county more than its contract permitted. A judge threw out the lawsuit last December. The case is now before the Ohio 12th District Court of Appeals in Middletown.
County commissioners recently accused the city of inflating the costs of supplying water to noncity residents, an allegation city officials deny.
During the past three years, Butler County has spent $687,656 in legal fees in its dispute with Hamilton, said George Gordon, the county's chief deputy auditor.
The county's appeal may cause Hamilton to spend several hundred thousand dollars more in legal fees, said Hamilton Vice Mayor Thomas Nye. “The county commissioners continue to waste taxpayers dollars with this lawsuit.”
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