ELYRIA , Ohio— Facing the prospect of millions in deficits, Elyria City Council has chosen to maintain its municipal sanitation department while approving substantial rate increases over the next three years.

The decision came after a financial analysis by Rea Business Advisors warned that without action, the sanitation fund could fall more than $5 million into the red by 2031. The study, an update to similar research from 2018, examined current costs and projected financial needs through the end of the decade.

Adam Letera of Rea Business Advisors outlined several scenarios for council members at their Nov. 17 meeting: privatize services, implement moderate rate increases, or maintain the status quo. A 3% annual rate increase would only postpone a financial shortfall, while a 5% increase could sustain a positive fund balance. Without rate adjustments or privatization, the study projects the sanitation fund would face negative cash flow by 2026.

Despite the financial pressure, the Strategic Planning Committee voted last month to reject privatization. While privatization might offer lower rates, officials highlighted that city-run operations provide a level of service that a private contractor could not match.

On Nov. 24, the finance committee formalized the rate structure for the coming years. The approved plan implements a 5% increase annually for 2026, 2027 and 2028—matching the consultant’s recommendation for financial stability.

Safety Service Director Chris Pyanowski framed the rate adjustment as the necessary follow-up to keeping services municipal. He told the council that having voted to retain the department, members now needed to ensure it remains funded.

The incremental increases are designed to prevent service disruptions while maintaining the city’s full range of sanitation offerings.