State Sen. Al Cutrona will introduce legislation Monday to restrict municipalities from tacking on more than a 25% surcharge to surrounding communities for water and sewer fees or face the loss of Local Government Fund money and state grants for those purposes.

“We see massive increases in what they’re charging the city residents as to what they’re charging the township residents,” said Cutrona, R-Canfield. “It’s in response to an issue throughout the state of Ohio, not just here. It’s a financial burden to township residents. They’re paying massive surcharges. The residents shouldn’t be paying the burden.”

Cutrona said: “Placing unfair burdens on residents and businesses in neighboring townships just to have access to water is a detriment to our communities. This legislation will ensure that citizens and business owners across the Valley and eastern Ohio receive fair treatment.”

The legislation would directly impact Youngstown and Niles, which purchase bulk water from the Mahoning Valley Sanitary District, which the two cities founded 100 years ago, and then resell it to other communities at a higher rate.

Niles charges a 50% markup to those in Weathersfield and Howland townships and a smaller increase to communities with bulk water contracts, said Niles Mayor Steve Mientkiewicz.

Youngstown charges a 40% fee to its customers in Austintown, Boardman and Liberty with bulk water contracts with specific fees to other communities, said Harry L. Johnson III. Cutrona said the surcharge to Boardman is higher than 40%.

Both Mientkiewicz and Johnson said if Cutrona’s bill takes effect, it will end up raising everyone’s water bills to make up for the shortfall from having to reduce the surcharges.

Johnson said if the bill passed, it “would be problematic. Cities have the (surcharge) built into their revenue streams. Cut it by 40% to 25% and you have to increase water rates, which is counterintuitive.”

Mientkiewicz said: “It’s very dangerous when state legislators meddle in municipal utility operations. It will have a negative impact on city residents and township residents because it will mean rates will increase for everyone. It will impact the larger number of city residents to take care of a small number of township residents. It’s very dangerous and irresponsible legislation. We’d have to increase rates for everyone, including our bulk rate customers. It makes zero sense.”

Mientkiewicz said the townships have had 100 years to install their own water systems and have chosen not to do so.

Cutrona said it isn’t fair for township residents to have to pay so much more for water when much of the growth in customer base comes from those communities.

Cutrona said he doesn’t object to a 25% markup as cities that sell water and provide sewer services have expenses, but any percentage higher than that is taking advantage of township residents.

“This would create a level playing field,” he said of his legislation.

The surcharge has been a longstanding issue in the Mahoning Valley for decades.

The issue has taken on renewed interest when Trumbull County’s water advisory panel met last month to talk about regionalizing the Valley’s water systems, which would require the support of Youngstown and Niles. Both cities have long resisted efforts to give up their control over MVSD water.

Residents in Liberty buy water through Youngstown, with the 40% markup, or through Girard, which buys it in bulk from Niles. Niles tacks on a 40% surcharge to water it sells to Girard, with the latter city adding another surcharge for Liberty customers.

Cutrona said bills similar to the one he will propose have been approved in the past by the state House, but not in the Ohio Senate.

Cutrona said he expects to receive support in the state Senate and wants to coordinate a companion bill in the House to speed up the process.

“This will give relief to our residents,” he said. “They’re taxed off now and they feel the burden with property taxes and utility charges.”

A municipality could ignore the surcharge issue, if the bill passes, but would have to forfeit their Local Government Fund allocation from the state and wouldn’t be eligible for state grants for water and/or sewer, depending on what they sell.

The bill would create a declaratory judgment legal process which would allow the affected subdivision to seek a judicial decision if a municipality is found to not be in compliance by either having unjustified higher rates or excessive direct payments.