Middletown delays planned 15% water rate increase due to utility billing outage

Middletown customers received their first water bills in January and February after a months-long outage caused by a cyberattack. Customers have until August 31 to fully pay the charges incurred during the outage.

Mayor Elizabeth Slamka raised concerns that the rate increase would come before the end of the grace period, though Scott Tadych, public works director, said billing cycles mean the first bills reflecting the 15% increase will likely align with the end of the grace period.

According to a staff report, the delay is intended to “allow customers to catch up on back payments from August 2025 before the 2026 rate increase takes effect.”

“The rate change is an operational necessity for our water services department, but doing right by our residents is our highest priority,” City Manager Ashley Combs said. “We understand that the recent cyber incident placed an unprecedented strain on our community, and we hope that postponing the scheduled increase provides meaningful financial relief to help offset that burden.”

The rate changes stem from legislation passed in October 2023 that set water and sewer rates for 2024–2028. The plan is based on a rate study conducted by Raftelis, a local government and utility management consulting group. Adjustments were recommended because of “anticipated increases in operational costs and capital investment needs,” according to the report.

Major capital projects include:

Public Works Director Scott Tadych said the backwash project and raw water transmission main replacement are expected to be completed this year. The elevated water tank is scheduled for completion next year, and water main replacements are ongoing.

“Revenue from this adjustment is dedicated to recent and upcoming capital investments,” Tadych said. “These improvements will strengthen our system and allow us to better serve our residents and customers.”

If the city had not increased user charges through 2028, the utilities’ financial health would be “severely hampered,” according to the study.

The city expects to collect $15,794,037 in water payments in 2026, including an additional $1,187,490 from the mid-year implementation of the increase. For 2025, projected revenue through Aug. 1 was $14,766,546.

As of March 2025, Middletown’s water rates were below average compared to 70 water jurisdictions in the Greater Dayton and Miami Valley region, according to an annual rate survey conducted by the Piqua Utilities Department.

For a three‑month billing period, Middletown customers paid an average of $121.14 for 22,500 gallons (or 3,000 cubic feet) of water, compared with the regional average of $163.22.