Sewer Rates Threaten Leesburg Businesses
July 28, 2016 at 4:25 p.m.
By Jen [email protected]
Several Leesburg business owners spoke out against the proposed ordinance, saying the rates for businesses were not fair. At least two of the business owners said they would likely move their businesses from town if nothing was done about the sewer rates.[[In-content Ad]]John Julian, of Umbaugh and Associates, explained that since the town does not have a metered system, the rates must be determined using state estimates of peak usage. Rates for both residential and commercial customers were determined using the system.
Tyler Haines, of Stacy's Lounge, said the rate system for commercial entities is not fair. He said the sewer rate for the restaurant will be about $2,100 a month, and Stacy's would not be able to stay in business in town with that kind of an expense.
"We want the system, we just want (the rates) to be fair," Haines said. "We are going to need some relief or we are going to lose the commercial businesses."
Julian explained that the rate structure outlined in the ordinance is designed to be defendable in court.
"Nobody wants to do a rate structure that will put you out of business," Julian said. "But we have to build a system that is defendable. This type of plan is defendable because it had been tried elsewhere and defended successfully."
In the ordinance, a restaurant with 113 seats will be charged $1,562 per month for sewer, a restaurant with 150 seats will pay $2,082 per month. Leesburg Elementary School will pay $2,000 per month, and a church that seats 168 will pay $335 per month for sewer service.
Residential customers will pay $73 per month for sewer service. Of that charge, $37.39 is used to repay the $3.2 million loan taken out for the system; $28.92 pays for day-to-day operations; $3.31 is used to set up the business end of the system; and $3.38 is used to generate cash needed for the system.
"It'll be a wagon train out of town," said Pam Schuler, Leesburg resident and representative of the Country Table. "What about the senior citizens on a fixed income? They can't pay for gas, food, medication and this."
Tom Moore, of Climate Control, said, "You're going to see Leesburg a ghost town in 18 months. This is a non-workable rate."
Julian explained, "There is not a single challenge more expensive than installing a sanitary sewer. ... Every community that has done this has had concerns about driving customers out. There are not too many empty towns in Indiana."
The town is scheduled to close on the loan for the sewer system June 19, and in order to secure the loan, there must be a rate ordinance in place. If the closing on the loan is not completed by July 31, the town will lose a $500,000 grant from the Indiana Department of Environmental Management.
After more than an hour of discussion, Council Member Jay Weaver made a motion to approve the sewer rate ordinance. Rick Stookey seconded the motion, and the ordinance was approved unanimously.
In other business, the council:
n Announced the preconstruction meeting will be at 10 a.m. at the town hall after closing on the loan.
n Heard that Bob Murphy, grant writer, just needs copies of the closing documents to finish the grant process.
n Heard the town garage sale is June 14.
Leesburg Town Council members are Stookey, president; Weaver and Ryan Robinson. Clerk-treasurer is Melissa Robinson, and street commissioner is Ed Riordan.
Several Leesburg business owners spoke out against the proposed ordinance, saying the rates for businesses were not fair. At least two of the business owners said they would likely move their businesses from town if nothing was done about the sewer rates.[[In-content Ad]]John Julian, of Umbaugh and Associates, explained that since the town does not have a metered system, the rates must be determined using state estimates of peak usage. Rates for both residential and commercial customers were determined using the system.
Tyler Haines, of Stacy's Lounge, said the rate system for commercial entities is not fair. He said the sewer rate for the restaurant will be about $2,100 a month, and Stacy's would not be able to stay in business in town with that kind of an expense.
"We want the system, we just want (the rates) to be fair," Haines said. "We are going to need some relief or we are going to lose the commercial businesses."
Julian explained that the rate structure outlined in the ordinance is designed to be defendable in court.
"Nobody wants to do a rate structure that will put you out of business," Julian said. "But we have to build a system that is defendable. This type of plan is defendable because it had been tried elsewhere and defended successfully."
In the ordinance, a restaurant with 113 seats will be charged $1,562 per month for sewer, a restaurant with 150 seats will pay $2,082 per month. Leesburg Elementary School will pay $2,000 per month, and a church that seats 168 will pay $335 per month for sewer service.
Residential customers will pay $73 per month for sewer service. Of that charge, $37.39 is used to repay the $3.2 million loan taken out for the system; $28.92 pays for day-to-day operations; $3.31 is used to set up the business end of the system; and $3.38 is used to generate cash needed for the system.
"It'll be a wagon train out of town," said Pam Schuler, Leesburg resident and representative of the Country Table. "What about the senior citizens on a fixed income? They can't pay for gas, food, medication and this."
Tom Moore, of Climate Control, said, "You're going to see Leesburg a ghost town in 18 months. This is a non-workable rate."
Julian explained, "There is not a single challenge more expensive than installing a sanitary sewer. ... Every community that has done this has had concerns about driving customers out. There are not too many empty towns in Indiana."
The town is scheduled to close on the loan for the sewer system June 19, and in order to secure the loan, there must be a rate ordinance in place. If the closing on the loan is not completed by July 31, the town will lose a $500,000 grant from the Indiana Department of Environmental Management.
After more than an hour of discussion, Council Member Jay Weaver made a motion to approve the sewer rate ordinance. Rick Stookey seconded the motion, and the ordinance was approved unanimously.
In other business, the council:
n Announced the preconstruction meeting will be at 10 a.m. at the town hall after closing on the loan.
n Heard that Bob Murphy, grant writer, just needs copies of the closing documents to finish the grant process.
n Heard the town garage sale is June 14.
Leesburg Town Council members are Stookey, president; Weaver and Ryan Robinson. Clerk-treasurer is Melissa Robinson, and street commissioner is Ed Riordan.
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