The temporary agreement provides 90 days of service as the city, the university, and the state of Ohio negotiate a permanent solution, the city announced Monday, which would potentially involve the annexation of Central State’s campus into Xenia.
Utility services to the university has been a long-standing issue, the city said. The university has “experienced delinquent utility payments and operational deficiencies related to water systems, fire alarms, and EMS coordination, some of which have negatively affected the city’s infrastructure and emergency response resources,” the city said.
As of Tuesday, Central State’s amount owed to the city for water is just over $311,000.
The operational deficiencies refer to an aging campus pump station, old water mains and water tower, and the “absence of a plan to properly maintain them” according to the city. The university also has deferred maintenance on fire alarm systems, and elevator system notifications, which “has caused undue strain on the city dispatch center and fire/EMS response.”
Rebecca Kocher, Central State’s Vice President of Institutional Advancement, declined to comment on specifics, citing ongoing legal negotiations, but added that the university leaders “look forward to continuing working quickly and collaboratively with Xenia officials towards a mutually beneficial arrangement.”
The question of annexation has also been a years-long issue. In 2020, Xenia annexed about 45 acres stretching from the city limits to Central State along the bike path (which the city owned), following a legal battle with Xenia Twp. The Ohio Supreme Court ultimately ruled in favor of the city, functionally greenlighting the “balloon and string” annexation, so dubbed by Xenia Twp. at the time.
As of today, Xenia has the string, but not the balloon. The 2020 annexation did not include buildings on Central State land (exempting university employees from its income tax). However, city officials believe the Ohio Department of Administrative Services and Central State University intend to move forward with annexation efforts in early 2026, “alongside state-supported investments in water and sewer infrastructure that address the city’s concerns.”
City administrators argue that annexing the university “represents the most sensible long-term solution,” and benefits both Xenia and CSU. In 2020, an economic impact analysis found that the city could gain about $340,000 a year in income tax revenue if Central State were annexed into Xenia. Annexation would also benefit Central State, city officials say, as it would eliminate the premium fees the university incurs by pumping water outside the city limits, and establish “permanent and reliable service delivery for utilities and emergency services.”
Throughout 2025, city staff held ongoing discussions with the university regarding long-term water service, infrastructure matters, and outstanding utility debts.
Recently, the Ohio Department of Administrative Services and its director Kathleen Madden became directly involved and requested a short-term extension of services to allow the state to finalize a plan addressing long-standing infrastructure and operational issues at the university.
“The city council was pleased to have the attention and commitment of ODAS in this matter and directed our staff to prepare an agreement to continue service for the next 90 days,” said former Xenia Mayor Will Urschel. “Our hope is that the ODAS plan will allow the university to regain a solid utility infrastructure and will allow the city to continue our long-term partnership with the university.”
Central State has called a special meeting of its trustees for Friday, Jan. 9.
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