Toledo Approves Increase In Water And Sewer Rates

The Toledo City Council discussed and approved a resolution increasing water rates by 7% to address budget deficiencies and operational costs. Water rates were increased last year at just over 4%. Council members debated the impact on citizens, with Councilor Mix proposing a 5% increase instead.

"Costs are going up everywhere" Mix said. "We need to be really aware of what our citizens can afford." Interim finance director Judy Richter pointed out more money is needed to keep the water plant operating. She said a 7% increase is the minimum needed and doesn't include anything extra to put away for a reserve fund for bigger maintenance projects.

Mayor Rod Cross emphasized the need for financial stability and reserves. He pointed out that in order to keep up the rates need to increase three percent one year and five percent the next year. This was done for a while and kept things stable but it stopped during COVID and now they are behind and need to catch up. He pointed out recent emergency expenses for a $750,000 water line repair.

"One blow up, can eat everything." Cross said "and we're right back scraping for the bottom of the barrel. We barely handled one last year. I don't want us to get to a point where we can't fix those problems for our citizens. And unfortunately, this is what happens. It's why those years that we didn't do an increase were so frustrating, because if we had just kept up with a two to 3% every year, we'd have been in a heck of a lot better shape."

Mayor Rod Cross clarified that water and sewer funds are separate and must be self-sustaining. The motion to approve the water rate increase by 7% passed 6-1, with councilor Mix voting no. The council unanimously passed a similar motion for a sewer rate increase of 3%. This follows a 7% sewer rate increase last year. The Salvation Army of Lincoln County has a fund available to help Toledo citizens with water bills if needed.