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Update on Deposits Being Charged by the Water Department

By now, you have likely seen the articles running in The Blade regarding the new $200 deposit being charged by the Water Department.

$200 deposit for city water is called bad for real estate business Councilman chides mayor over surprise fee for water

This was first brought to my attention by our members the week of the 14th and I had a meeting with the Water Department on January 17th.   During that meeting both Dave Welch and Tom Crothers apologized for not notifying us of the change and provided me with the following information:

The $200 deposit is on all new single family accounts and is charged per unit. It will appear on the first quarterly bill and is not due at the time service is set up. The deposit will be applied to the owner’s final bill. The deposit is already in the Toledo Municipal Code but was not enforced.  The code says it can be up to 2.5% of a customer’s average annual bill, but the flat fee is less expensive in most cases and easier to enforce/compute. If an account has been turned off now this $200 deposit is charged on top of the existing fee for a total of $400 to have service turned back on and it is due up front before the service will be turned back on.

The reason for the deposit is:

DPU only has $4 million in reserves and the average water line in 72 years old. The EPA is requiring DPU to accelerate their time frame of making needed improvements. Collection rates have fallen from 98% to 95%.

TBR Member and Toledo City Councilman Rob Ludeman sent a letter to City Council because they were not informed of the increase and a Public Meeting will be held on February 4th at 4:00 PM in Council Chambers at One Government Center.  I will be at the meeting and encourage you to attend the meeting and express your opinion.

In an effort to prevent another lapse in communication, I will be meeting quarterly with the Water Department and they have offered to attend one of our upcoming Lunch and Learns.

I will keep you updated as I hear more information and please don’t hesitate to contact me if you have any questions.



Water Department Update from Megan

February 4, 2013

The Water Department invited me to a meeting to discuss the changes to the security deposit policy.  Those changes include the following:

Deposits will not be charged on single family residential units where there is a positive DPU billing history. The $200 security deposit will be credited to the customer’s account when a customer has established a satisfactory credit record with DPU by paying 12 consecutive months in accordance with DPU’s standard terms for payment.

DPU has been very willing to hear our concerns about this and other matters.  They will be presenting at the Lunch & Learn on February 20th and will be hosting quarterly meetings with myself and other industry groups to keep us informed of upcoming changes and to gather our feedback.