MONTGOMERY COUNTY — Montgomery County has filed a lawsuit against the City of Dayton Water Department, according to Montgomery County Administrator Micahel Colbert.
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The lawsuit is the result of a “direct violation” of the Water Supply Agreement which was negotiated in 2018.
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Colbert said this breach overcharged the county by at least $14 million over the past six years.
“The County has not passed the increased costs on to the more than 230,000 customers we serve, but we can no longer continue this practice and remain fiscally responsible to our residents,” Colbert said.
The city’s water department hasn’t followed the required reporting procedure when it comes to the cost of service model, despite multiple requests, according to Colbert.
“After exhausting all other avenues to resolve this dispute, the Montgomery County Board of County Commissioners has no other choice but to pursue litigation,” Colbert said.
The county recognizes that utility costs are a concern, but can no longer absorb the “unjustified costs.”
County residents could see increased water bills if the dispute isn’t resolved.
“Montgomery County remains dedicated to upholding the law and ensuring our residents have safe, sustainable, and affordable drinking water,” Colbert said.
Dayton leaders issued statements in response to the lawsuit.
Dayton City Manager Shelley Dickstein said the city is “disappointed” by the “County’s unwarranted decision to file suit.”
Director of Water Department Michael Powell said in part, “the water rates charged to Montgomery County are based on a financial Cost of Service model, an industry-standard practice to ensure water rates are equitable ... All parties agreed that the agreement was followed, and the water rates identified by the agreement are accurate.”
Dayton Mayor Jeffrey Mims said:
“I’m extremely proud of our Water Department and the hardworking employees who keep our region supplied with safe, high-quality drinking water every single day. Our utility is well-run, well-managed, and respected by both industry peers and regulatory agencies. I drink Dayton’s water, and so does my family—we trust it because we know the care and expertise that goes into delivering it. It’s unfortunate that the County feels there’s been a breach of our agreement. We are unwavering in our commitment to delivering top-tier, cost-effective regional water services- now and for the future.”
News Center 7 will continue to follow this story.
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