Xenia and Central State have since negotiated a 90-day extension. But the university will pay 1.5 times the rate that city of Xenia residents pay, which is the out-of-city customer rate, according to CSU officials. CSU was previously paying 1.2 times the Xenia resident rate, per Xenia officials.
Xenia city manager Brett Merriman said Xenia has worked on annexing Central State and establishing permanent municipal service delivery to campus for nearly two decades.
“Recently, the city council felt compelled to take more decisive actions to call the question as concerns have mounted over the sustainability of CSU water infrastructure and the liability this has created for city utility services,” Merriman said.
It’s unclear what the timeline for annexation would be, Merriman said, though the university, the city and the state are all actively in discussions. The temporary extra-territorial service agreement expires at the end of March.
“The future is bright,” for Central State, Merriman said, adding that steps to ensure the “long-term financial security for the university should include permanent arrangements for the provision of critical services like public utilities.”
“It is in the best interests of all parties to expeditiously move toward an agreement on how to proceed,” he said.
Central State received a water bill in December for over $300,000, according to water bill records obtained by this news outlet, after the city of Xenia incorrectly applied a credit to the university’s balance.
A letter from Xenia to Central State obtained by this news outlet says the money was incorrectly applied to CSU’s account after a water main break on campus in July. The misapplied credit totaled $184,333.
CSU made a payment of $71,407 in December to Xenia for its water bill, after which Xenia sent them the letter about the misapplied credit.
The university’s records reflect a total outstanding balance of approximately $263,000 after the credit was accounted for, CSU officials said.
When asked how the university had made that calculation, Rebecca Kocher, CSU vice president for institutional advancement, said in a statement: “Central State University continues to work closely and collaboratively with the city of Xenia regarding potential annexation for water and sanitary sewer purposes (for which it has been paying an extraterritorial surcharge for several years), as well as resolving outstanding billing matters. We commit to providing additional information once our negotiations and discussions are resolved and approved by the board of trustees.”
Central State has had other, ongoing infrastructure issues, according to a state auditor report on Central State’s finances. The university received $1.2 million from the state last November to address faulty fire alarms and “critical bathroom repairs.”
The university has been facing ongoing financial problems. Last year, 33 staff members and seven faculty members were cut as part of a cost-savings measure. Central State president Morakinyo A.O. Kuti said at a recent board of trustees meeting that CSU is facing a $5 million shortfall in fiscal year 2026 if drastic changes are not made. The university is planning another round of faculty layoffs, but it’s not clear how many people may be affected or on what timeline.
