Montgomery County is suing the city of Dayton’s water department, alleging it’s been overcharged for water by Dayton for six years.
The city of Dayton supplies drinking water to Montgomery County. The county estimates it’s been overcharged by at least $14 million.
The county, which filed suit Friday, alleges Dayton is in direct violation of their water supply agreement negotiated in 2018.
According to the official complaint filed with the Montgomery County Pleas Court, the county sent letters to the city of Dayton in December 2023 and February 2024 to try to solve the dispute through informal discussion, but to no avail.
"Montgomery County has performed its obligations pursuant to the Agreement, including timely payment of the improper rate increases strictly to avoid the disruption of water service to Montgomery County residents," the complaint reads.
The county hasn’t raised customer rates since 2022.
But Montgomery County Administrator Michael Colbert said in a statement that rate increases might carry over to the county’s 230,000 water customers if the dispute isn’t resolved.
“We can no longer continue this practice and remain fiscally responsible to our residents,” Colbert wrote.
In response to the lawsuit Dayton’s city manager Shelley Dickstein said in a statement that “The City is disappointed by the County’s unwarranted decision to file suit making allegations of breach of contract.”
Dayton’s water director Michael Powell in a statement said the city and county staff have consulted with third party financial consultants every year to establish current rates.
“All parties agreed that the agreement was followed, and the water rates identified by the agreement are accurate,” Powell wrote.
