Forest Village Council Special Meeting – August 6, 2026

The Council of the Village of Forest, Ohio, held a special meeting on August 6, 2026 @ 6pm @ the City Building located at 211 W. Lima Street, Forest, OH 45843.

No other business will be considered at this meeting, except what is permitted by law.

Mayor Derek Hastings called the meeting to order with the Pledge of Allegiance.

Attendance:

• Derek Hastings – present
• Valerie Mullholand – present
• Mary Dickinson – present
• Loretta Perkins – present
• Joe Moore – present (arrived 6:12pm)
• Sarah Hankins – present
• Danielle Moore – present

Ben with Wessler Engineering (Wessler) and Cindy with Rural Community Assistance Partnership (RCAP) were also in attendance.

The Division of Environmental and Financial Assistance (DEFA) has been reviewing the Village of Forest’s financial position and funding requests and has expressed concerns regarding the Village’s ability to repay the proposed loans. DEFA requested that the Village reconsider its project approach and provide an updated rate analysis reflecting the phased implementation of wastewater system improvements over multiple years.

The original funding request included complete design services for both the lagoon treatment facility improvements and the replacement of the existing vacuum sewer collection system with a gravity sewer system. DEFA, in their evaluation, is unable to consider potential grant funding or loan forgiveness opportunities when evaluating loan applications. DEFA must also account for the possibility of construction delays, which can have significant financial implications depending on the type of design loan selected.

Two loan options are available for project design: the Wastewater Pollution Control Loan Fund (WPCLF) and the Ohio Water Development Authority (OWDA). A WPCLF design loan carries a 0% interest rate but must be rolled into a construction loan within one year of design completion. If construction is delayed beyond that timeframe, the Village would be required to begin repayment of the design loan and fully repay it within five years. Conversely, OWDA loans typically carry a low interest rate and require principal payments to begin as funds are drawn; however, OWDA loans have a repayment period of 20 to 30 years. Both WPCLF and OWDA loans can be rolled into WPCLF 0% construction loans.

DEFA expressed concern that, in the event of construction delays, the Village may be unable to satisfy the repayment requirements associated with a WPCLF design loan without implementing rate increases that exceed a reasonable burden on residents. DEFA advised that sewer rates should be increased annually in preparation for future capital improvements and indicated that a phased approach would be more financially sustainable.

Wessler and RCAP discussed the available loan programs and the benefits and drawbacks of each option. They also discussed the benefits of phasing the design and construction of the proposed improvements over multiple years. Both Wessler and RCAP recommend moving forward with the design of the lagoon treatment facility improvements and delaying design of the collection system improvements. Phasing the treatment facility and collection system improvements over multiple years would increase the potential of securing grants or principal forgiveness while also providing the Village with additional time to budget appropriately, build capital reserves, and implement gradual rate adjustments to address future operating and debt service costs.

RCAP indicated they would assist the Village with preparing funding applications and recommended pursuing financing through OWDA. Ben advised that Wessler can amend the existing design contract to remove the collection system design scope and reflect only the costs incurred to date in addition to the design of the treatment facility improvements.

The estimated total cost (design and construction) for the lagoon project is approximately $10,400,000. The estimated total cost (design and construction) to replace the vacuum system would be $24,400,000.

Cindy presented the rate analysis she completed. She advised that the analysis does not factor in any financial assistance and is worst case scenario. It begins with a recommendation of $5.94 base rate increase to begin in 2027. There are continued increasing to base rate for an additional 5 years with $7.46 being the highest increase. It was also recommended a $.36 per thousand-gallon usage in 2028 and $.37 per thousand-gallon usage in 2030. Again, these financials are based off no loan forgiveness or grants.

The Village’s Sewer Fund must generate sufficient revenue to cover all operating expenses and debt obligations, including loan repayments. Currently, the Ohio EPA (OEPA) has issued a Schedule of Compliance requiring the wastewater treatment facility to meet future effluent limits by 2029. As currently configured, the existing facility will be unable to achieve these future regulatory requirements. Failure to comply with the OEPA Schedule of Compliance could expose the Village to enforcement actions, fines, and other legal consequences. The Village is currently on track to meet the milestones established by the OEPA and remains committed to maintaining compliance with all regulatory requirements. Wessler spoke with OEPA Regulatory Division, and there is potential to modify the existing permit to better allow for construction phasing. Anything definitive is to be determined.

Solicitor Tom Seeley has been contacted to research other revenue options such as income tax increase or property tax increase. He presented that income tax has less obstacles and would bring in the most revenue. He stated that it could be designated for sewer projects. It was discussed about Forest does not give tax credit to wage earners and additional income tax would be an additional burden. Currently, the Village of Forest has a 1.25% income tax to wage earners and net profits. The Village of Forest receives 1% while .25% of the income tax is specifically for Park only. The soonest an income tax rate could be on the ballot would be May 2027. Solicitor Seeley also identified different funding and grant options.

M. Dickinson moved to move forward with lagoon design and construction. M. Dickinson also stated that the residents have been clear that they would like the vacuum system issues addressed and should continue working on options to get this project completed in the future. The preference of the Village is to replace the vacuum system with a gravity system, and the council is to give Wessler and RCAP the discretion to continue discussions with OEPA and DEFA to achieve this goal until presented with material and facts warranting reconsideration. V. Mullholand seconded. Vote: all yeas, 0 nays. Motion carried.

V. Mullholand moved to adjourn. D. Moore seconded. Vote: all yeas, 0 nays. Meeting adjourned 7:22pm.

Approved: 8/27/26