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GIRARD -- In-city water customers will see a 16% water rate increase on their November bill after officials learned that Girard owes Niles approximately $1.6 million in water payments from 2020 through 2023.
Mayor Mark Zuppo told city council Tuesday that a letter will be included in the November bill explaining the situation with the delinquent payments to Niles and rate increase for Girard users.
Zuppo said he spoke to Niles Mayor Steve Mientikiewiz and learned that Girard owes Niles $770,000 in water payments from 2023 and also owes $848,000 from 2020 through 2022.
"We spoke to different legal experts and were told that we used the water, and we'll have to pay for it," Zuppo said.
Zuppo said Niles and Girard officials are working on a new water agreement that would need to come Girard Law Director Brian Kren said he plans to bring an ordinance on a water contract with Niles at an upcoming council meeting. He said Girard has borrowed money to begin paying back the money owed.
"We came up with a plan where we will be paying it back over four years. When the contract is done, we will be paying 88% of their (Niles) inside rate (over 20 years)," Zuppo said.
Zuppo said Girard customers will be paying $6.94 per 1,000 gallons, which later will be $4.36 per 1,000 gallons when the back payments have been settled.
Councilman Thomas Grumley, D-4th Ward, said the city has been cracking down on delinquent water bills, which went from $426,000 to $150,000.
Zuppo said the city is making residents who owe delinquent water bills to sign a contract that they will pay so much per month to get caught up on the arrears.
He said this has helped the city reduce its delinquencies, but paying its own delinquency to Nlies is depleting Girard's water fund.
Zuppo said once the money owed to Niles is paid off, city water rates will be reduced from a 16% rate increase to a 12% rate increase in 2026.
Safety-Service Director Sal Ponzio said the 16% increase is on water only, not sewer.
Councilman John Moliterno, D-at Large, said council was not made aware of the water situation with Niles last year.
"It will hurt the people paying the extra water rates, but in the end it will benefit the city," Moliterno said.
Kren said Niles discovered that Girard was to pay 40% of the inside rate and was getting billed less. Kren said the water meters from Niles to Girard used to be based on cubic feet and then was changed to gallons.
That was when the error was discovered that Niles was underbilling Girard at $770,000.
Kren said in 2023, Niles officials gave notice to Girard officials of what the correct water rate was. He said the prior Girard administration was only paying what they thought the water bill should have been, not the actual amount.
Jim Melfi, who is running for Trumbull County treasurer, was the mayor when the billing snafu occurred.