News

Jun 15, 2023

Relief for La Rue: Aqua buys village's water treatment system

Aqua and the Village of La Rue finalized an agreement for the utility to purchase the village's water system for $2.25 million. According to Aqua officials, the purchase includes the village's water

Aqua and the Village of La Rue finalized an agreement for the utility to purchase the village's water system for $2.25 million.

According to Aqua officials, the purchase includes the village's water treatment plant, water mains and an elevated storage tank.

The LaRue water treatment plant is 13 years old, according to village officials, but began experiencing issues about 11 years ago. The village secured a $1.8 million loan to fund construction of the facility and still owes on that loan.

“Operating a water system is increasingly difficult for small communities as expenses mount and standards become stricter,” said Robert Davis, Aqua Ohio’s president. “I’m glad that Aqua is able to help the residents of La Rue. Our team has operated the nearby Marion water system for decades and are continually improving it as we do in all of our systems. In La Rue, we’ll use our engineering and operational expertise to modernize the operation starting withimprovements to their filtration process.”

The water treatment plant, which serves about 300 customers, produces about 50,000 gallons of water daily. The system includes 4.8 miles of water mains, according to a press release issued by Aqua on Tuesday. Aqua and La Rue village officials reached the agreement on the sale in January and the Public Utilities Commission of Ohio approved the agreement in June.

Aqua officials said the sale was scheduled to be closed on Aug. 1. Company officials said customers affected by the sale will receive details about the transition in a welcome packet distributed by mail following the closing.

According to the press release, the proceeds from the sale will allow the Village of La Rue to "retire system debts." Additionally, Aqua will invest an estimated $750,000 in the system within the next four years to optimize operations and meet regulatory demands. And the village employee who currently works for the system will remain in that position via a contract with the village.

"Soaring costs and regulatory requirements make it difficult for small systems to operate without unreasonable rate increases," La Rue Mayor Dustin Ford said. "Aqua plans to make the needed improvements at the plant, and in the water distribution system that would strain the village's budget. The company can leverage their size and buying power. Over time, rates will be lower than they would have been if we maintained ownership ourselves.”

The sale of the water treatment system takes a tremendous burden off of the village, whose leaders approached the Marion County Commissioners on March 24, 2022, seeking financial assistance to make an estimated $1 million worth of improvements that consultants said needed to be made to the system. Options presented during the meeting with the county commissioners included seeking grant funding from the Ohio Department of Development and obtaining ARPA funding from the commissioners.

A week before the meeting with the county commissioners in March 2022, La Rue officials had started talks with Aqua about the situation, which set the stage for the eventual purchase of the water treatment system this year.

“We’re glad to be able to present La Rue with a solution to their challenges,” said Tony Mancari, Aqua’s director of municipal services. “Many more Ohio communities are partnering with Aqua to explore options and evaluate how to best meet debt, compliance, and operational needs. Aqua is positioned to consult and assist local leaders in navigating the challenges and opportunities associated with their water and wastewater utilities."

Aqua Division Manager Scott Ballenger will direct the operation of the La Rue water treatment system once the agreement is approved. He said he's looking forward to helping the community solve a long-standing issue.

“I’ve been a resident of Marion County nearly all of my life. I’m glad to be able to help our neighbors in La Rue and grow our footprint in the community," Ballenger said.

According to the company press release, in the short term, Aqua will focus on improving the water treatment plant’s filtration process, replacing control valves and upgrading water quality monitoring technologies. Thecompany will then begin strategically replacing the distribution system’s valves, hydrants, water mains, and water meters.

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