LORAIN — Lorain City Auditor Anita Harper said the city is facing a growing financial gap in its utility system, with a reported deficit of approximately $2.6 to $2.7 million in the water pollution control fund as discussions begin on potential rate increases.
The issue was discussed during a recent Lorain City Council finance committee meeting, as council works to finalize the city’s 2026 budget.
According to Harper, the deficit is tied to a combination of ongoing infrastructure costs, revenue levels that have not kept pace with expenses, and the timing of reimbursements for major projects. More than $6 million in project funds have already been committed, though not all of that spending is expected to occur within the current year.
“We’re going to increase the revenue estimates to cover the deficit… this is basically just giving you a little extension of time to actually zero in on what needs to be done,” Harper said during the meeting.
At the same time, city administration reported that thousands of residents are behind on their utility bills.
More than 3,600 accounts are currently delinquent, with roughly $2.25 million owed. Administration officials also said utility shutoffs are continuing on a weekly basis, estimating around 20 to 30 per week, though many are later restored after payment arrangements are made.
To address the shortfall, the city is considering multiple options, including potential increases to water and sewer rates. A more detailed review of the system’s finances and possible rate adjustments is expected to begin in early April.
Council members raised concerns about the potential impact on residents, particularly as many are already struggling to keep up with payments. Some said the city should continue reviewing spending and long-term planning before moving forward with any increases.
Administration officials also said the city is exploring ways to recover unpaid balances, including the possible use of third-party collections, while also directing residents to available assistance programs.
It is not known at this time what specific rate increases, if any, will be proposed or when a final decision could be made.
City officials said discussions will continue over the coming months as they work to bring the fund back into balance while maintaining essential services.