Montgomery County sues Dayton city water department, alleges $14M overcharge
Feb. 14—Montgomery County announced at 5:15 p.m. Friday that it is suing the city of Dayton water department, alleging that the city has violated the parties' 2018-era water supply agreement.
Specifically, the county said that the city had overcharged them by at least $14 million over the last six years.
The lawsuit did not appear on the Montgomery County Common Pleas Court's website as of 10 a.m. Saturday. A county spokesman said their attorneys filed the complaint late Friday afternoon and would not provide a copy to the Dayton Daily News.
In a statement from County Administrator Michael Colbert, county government said the city of Dayton water department failed to follow required protocol for reporting the cost of water service.
"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.
In statements Friday evening, Dayton city leaders expressed disappointment and denied wrongdoing connected to the water agreement.
City Manager Shelley Dickstein said that the current water agreement was the result of considerable negotiation, and that since then the city and county had worked to resolve any questions.
"The city is disappointed by the county's unwarranted decision to file suit making allegations of breach of contract. The city will defend this matter in court and has no further comment at this time," Dickstein said.
Colbert said the county has not passed along increased water costs related to the alleged overcharging to its 230,000 customers, but added, "we can no longer continue this practice and remain fiscally responsible to our residents."
The communities that receive drinking water from Montgomery County, and therefore are affected by their prices, include Kettering, Centerville, Riverside, Clayton and several others.
Colbert said the county does not want to pass on "these unjustified rate increases" to our residents and businesses, but that county residents "could see higher water bills if this dispute is not resolved."
Dayton Water Department Director Michael Powell said that the water rates are based on an industry standard practice to ensure rates are equitable. He said that city and county staff met with third-party consultants each year to review rates and that all parties agreed.
"The city has followed the processes identified in the Water Agreement. We remain devoted to providing high quality and affordable regional water services and will continue to do so for years to come," he said.
Dayton Mayor Jeffrey Mims said that he was proud of the city's water department, calling the utility "well-run, well-managed and respected."
"It's unfortunate that the county feels there's been a breach of our agreement," he said.
The lawsuit appears to deal with specific terms of the agreement between the city of Dayton and Montgomery County.
Unrelated to their agreement, there is an annual survey of water bill costs for communities in southwest Ohio, currently run by the city of Piqua. In the 2024 survey, the water cost for communities served by Montgomery County was on the higher end, but not near the very top. Just over 40 communities, including the city of Dayton, showed lower costs, while almost 20 communities showed higher costs.
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