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HAMILTON — While Butler County officials blame Hamilton for their residents' high water cost, Hamilton officials blame growth.

In a July 3 letter to the county, Hamilton Mayor Don Ryan tells his version of how the county's rates got to where they are — roughly twice the cost of Hamilton's.

Ryan says that Hamilton expanded its water system 20 years ago "at the county's request to allow developers to convert Liberty, Fairfield and West Chester townships from farmland to neighborhoods and business districts."

He says Hamilton sold water to the county in 2007 for $2.31 per thousand gallons, and the county marked that up to $5.42 per thousand gallons for residents, compared to the $2.62 per thousand gallons the city charged its customers.

"I'd also bet county customers don't realize that the markup charged by the county is needed to pay for the debt the county incurred on all of the water pipes, tanks, pumping stations and delivery systems that were installed ... over the last 20 years," the letter said.

Sue Vance, director of Butler County Environmental Services, said the biggest cost to Butler County ratepayers is the cost Hamilton charges for water.

Of every dollar a Butler County customer pays, 40 cents goes to purchased water, 19 cents each to staff and debt payments and 13 cents goes to capital costs, she said.

The county's contract with the city of Hamilton requires the county to buy water from the city until 2021.

Under that contract, the county must purchase 8 million gallons a day from the city now for $2.42 per 1,000 gallons. Everything over that costs $1.59 per 1,000 gallons.

But the county now buys all water over that 8 million gallons from Greater Cincinnati Water Works, which cut a better price. The county is negotiating with the Cincinnati utility to merge systems.

That's what prompted Ryan's letter, which suggested saving money by merging Hamilton's and the county's water systems into one.

The county has also met with other local utilities to discuss increased cooperation. Fairfield officials said talks were cursory, while Middletown officials said a merger was explored and abandoned.

The county is still in negotiations with Greater Cincinnati Water Works about a merger, but officials say they're far from anything official.

Meanwhile, county leaders are working to meet their promise of a 10 percent cut in water rates, and 15 percent cut in sewer rates, in early 2009.