MENTONE - By unanimous vote, the Mentone Town Council Monday agreed to have H.J. Umbaugh & Associates, Plymouth, study the town's sewer and water rates.

The town is just "eking by" on the sewer fund and may need to increase its sewer rates.

John D. Julien, CPA and partner with H.J. Umbaugh & Associates, told the council the company has worked with the town in the past on several projects. For the town's current problem, he said, his company can evaluate the financial situation of the utilities and make a recommendation of how the town should adjust their rates if necessary.

To make the evaluation, Julien said, they will look at the last three years of the utilities' operations for trends. They will work with superintendent Brian Reed and try to see how operations may change in the future. That will be incorporated into the rate study before the recommendation is made before the council.

In Indiana, rates are established in accordance with state statute.

Once the town council makes a decision on how it wants to proceed with the rates, Julien said, he will work with the town attorney on resolutions regarding the rates.

Once those are prepared, a notice will be published informing the public of a public meeting on the rate changes. The public hearing will be held where Julien will give the public his presentation on why he thinks the town needs to change its rates. Any questions from the public will be answered.

After the public hearing, the town can vote on the resolution for rate changes.

The cost for both the sewer and water rates study is approximately $7,400.

Town councilman Jack Simpson asked why the sewer rates were lowered in 1998. Julien responded they were reduced to offset the increased water rates. After Simpson then asked what happened to the sewer, clerk-treasurer Barbara Ross said, "It got old and got expensive."

"We really haven't had any excessive problems in wastewater," Reed said. Most of the problems the town's sewer has had have been general items. The new sewer was put in place in 1990.

Simpson asked if the sewer was failing faster than projected.

"It's not a failure to me," said Reed. "It's just a maintenance problem that comes up occasionally."

He said it was holding up as projected but the maintenance can be rather intense at times.

Simpson said he wondered why the sewer was almost financially broke since 1998.

Reed replied, "I don't know how it got away so quick. That's what I'd like John to tell us."

Last June, the town did lose a major customer - Mentone Egg - which Reed said provided "25 percent of our income."

"It's not getting any cheaper," he said.

Simpson made a motion to have H.J. Umbaugh & Associates review the sewer and water rates with the understanding that the sewer tank may go out some day.

Julien said for financial planning purposes, it's difficult to come up with enough money for a tank just by increasing the rates. Last time the town purchased a tank, the town received a grant and did a bond issue.

Simpson said if the current one suddenly goes out, the town would have nothing and not enough money to replace it.

Mark Hughes, council president, asked Ross where the money will come from to pay for the study.

She replied that water could pay for its share, but for the sewer share, a transfer would be needed.

Julien said it would be about two to three weeks before an Umbaugh representative could come to town and do the field work. After that, it would be 30 days before they could come back to the town with recommendations.

Hughes seconded Simpson's motion and it was unanimously approved.

In other business, the town council:

• Heard an application to the state to close off Ind. 25 June 2-5 for the annual egg festival has been made, but they have not yet received word back as to if they have permission to close it off yet.

• Agreed to meet with the town's insurance representative on the town's insurance. The meeting will be held on an undetermined Monday at 7 p.m.

• Heard from Simpson that the town needs to find the cost of joining Kosciusko County on flood insurance. The board discussed it but never did anything about it, he said.

Simpson also said the cemetery board held its meeting and talked about having some trees cut and what the jobs of the cemetery sexton are. The cemetery board is out of money and they also discussed ways of trying to get money.

Town employees eventually cleaned up the cemetery for $750 and several people told Simpson, he said, that the employees did a good job.

"I commend you guys for doing a great job on that cemetery," Simpson said.

Members of the Mentone Town Council are chairman Mark Hughes, Tim Croy and Jack Simpson. They meet at 7 p.m. in the town hall on the first Monday of every month. [[In-content Ad]]