The Great Water Plant Giveaway

To truly understand how this happened, we have to start at the beginning.

In the fall of 2014, the Board of Public Utilities (BPU) sought significant water rate increases to fund construction of a new water tower and water treatment plant on East High Street. The plan called for:

  • A 15% rate increase in 2014

  • Another 15% increase in 2015

  • Additional increases in 2016

The stated reason for the new tower and plant was capacity. As reported at the time:

“…Last summer, water levels ran dangerously low in the city’s existing water tower…”
(Source: Madison Messenger)

There was also the claim made that  “If we have a large fire, we could run out of water,” (Source: Madison Messenger)

These early rate hikes were framed as essential to meet London’s growing water demands and avoid future shortages. What followed, however, would set the stage for one of the most costly giveaways in the city’s history.

January 2015 – First Major Obstacle
The project quickly ran into financial trouble. The lowest bid for the tower came in at 20% higher than projected. With some modifications and an additional low-interest loan, City Council approved the contract by the end of January 2015. This marked the official start of what was promised to be a decades-long investment in London’s water infrastructure — paid for directly by residents through higher rates. (Source: Madison Messenger)

January 2015 – Contract Approved 

After weeks of debate, the London City Council voted 5-2 on Jan. 22 to let the Board of Public Utilities (BPU) build a second water tower for $3.1 million, with a second water plant planned at $8 million. To fund the projects, BPU had raised water rates 15% in 2014 and did so again in March 2015, with more hikes to be expected through 2018. The increases sparked controversy since BPU could, at the time, raise rates without council approval. Councilman Trint Hatt had proposed legislation requiring council oversight for water rate changes, which BPU said it supported. (Source: Madison Messenger)

Late 2015 – Water Supply Confirmed
Later that year, BPU provided a progress update on the project. Addressing concerns about water availability, they stated:

“The two wells have been tested many times and are in good shape. There’s more than enough water to carry the capacity.”
(Madison Messenger, “Progress on New London’s Water Tower”)

This public statement confirmed that the city’s water supply was not only stable, but more than adequate — removing one of the primary justifications for handing control of the system to an outside entity in the years to come.

March  2016 – Loan Application Approved
London’s Board of Public Utilities (BPU) is awaiting approval of a $6.5 million loan from the Ohio EPA and Ohio Water Development Authority to fund construction of a new satellite water treatment plant. The agencies are set to vote on March 31, and approval is expected. Thanks to council members completing an EPA education course, the city qualifies for a 1.22% interest rate on the 30-year loan—down from 1.9%. The project cost covers engineering, design, planning, and construction. If approved, work will begin this summer, take about 18 months, and the plant should be operational by late 2017.(Source: Madison Messenger)

August 2016 – Water Tower to be Lifted into Place

A second water tower would soon rise over London.

During the Aug. 18 city council meeting, London’s Board of Public Utilities water superintendent, shared the project’s progress and what remains to be done.

The new one-million-gallon tower and automated satellite plant were being built on 20 acres along Route 142 near Deer Creek Honey Farm. The tower, currently assembled and lying on the ground, was scheduled to have its exterior painted by Sept. 9.

Between Sept. 12 and Oct. 7, cranes were to lift the tank into position. Interior painting and installation of the electronics and instrumentation would be complete by Nov. 4. Final sign-off was expected in late November, after which the tank would be filled.

Construction on the plant’s foundation was to  begin the same month, with both the plant and tower projected to be operational by late summer or fall of 2017.(Source: Madison Messenger)