Warsaw Looks At $10 Per Month Sewer Rate Hike
July 28, 2016 at 4:25 p.m.
Sewer issues dominated the Warsaw City Council meeting Monday.
Part of the meeting was dedicated to a public hearing on an ordinance establishing new rates and charges for the sewer services. No action was taken.
Under the proposed ordinance, the rate and charges for all dwelling units will be increased by $10 to $24.50 per month for each unit. However, for residents with gross income of less than $15,000 per year, the rate will be only $12.25. Rates have not increased since 1989.
The increase will help boost revenues to cover bond issues for a new treatment plant and a collection system. Cost for the treatment plant is estimated at $10.27 million while cost for the collection system is estimated at $6.7 million. Actual bids for the treatment plant will not be let until December or January.
Councilman Joe Thallemer said it was his impression the council needed to raise the rates because they haven't been raised in 12-1/2 years. If the city would have maintained the rates, he said, they wouldn't have to increase them all at once.
"Right," agreed CPA Todd Samuelson, H.J. Umbaugh and Associates, Plymouth. "It's really remarkable the rates have lasted this long."
Umbaugh and Associates are the financial consultants for Warsaw on the sewer projects.
Ruth Hamond, a Warsaw resident, asked why a couple should pay the same rates as a large family.
Warsaw does not own the local water company, Warsaw Mayor Ernie Wiggins said. And not every Warsaw resident is a Indiana American Water Co. customer, he said. Samuelson added that there are some limits on the rate structure and while a flat rate is not the best, it is the least expensive.
Several remonstrators were concerned about how the increase in rates would effect senior citizens and people with fixed incomes. The remonstrators wanted discounts for older residents.
Samuelson said it would be impossible to maintain that kind of system where each person had a different rate based on different factors. "It doesn't work very well from a management standpoint," he said.
No tax, councilman Charles Smith, is totally fair.
One remonstrator asked if the increased rates could be held off for six months to see where the economies of the world are heading, due to the war and factories slowing down.
Wiggins said even if they proceeded today, the treatment plant wouldn't even be online until 2003. The new rates wouldn't go into effect until January. "At some point in time," he said, "we just have to draw a line" and get the numbers nailed down and proceed.
In the past, the council was too conservative in adjusting the rate, causing the need for a large increase this year, Wiggins said. "Sometimes being too fiscally frugal can rear its head" and cause more problems.
The rate increase will be discussed again at the council's November meeting.
In other sewer matters, Dr. Tom Krizmanich, who lives on Deer Trail, told the council he wants his home connected to city sewer and water.
Krizmanich said there are three lots at the end of Deer Trail with sewer connections.
"At this time, I am interested, as are several others," said Krizmanich in hooking up to city sewer. He said they are surrounded by city sewer and "... I think it would be appropriate to put in sewer at Deer Trail."
Scott Bowman, Deer Trail, said he had the same concerns as Krizmanich. Though they may not be able to hook up to city sewer today, he said he'd like to see his home hooked up to city sewer some time down the road.
Lacy Francis, public works superintendent, said approximately 10 homes along Deer Trail don't have city sewer. The homes may be able to hook up to the city's lines eventually. Currently there are no short term plans to do so. The three lots currently with sewer along Deer Trail are hooked up on a private line, he said.
Councilman Jeff Grose asked Wiggins to investigate the issue further with Francis and the neighbors.
"The more information for us, the better," Grose said.
Daniel Beam, Duncan Drive, petitioned the city for the "right to not connect to the sewer system at this time," according to a letter Beam submitted to the council.
Beam does not want to connect to the sewer system because he installed a $7,000 septic system in July 1997. He asked for an extended period of time to allow him to use his new septic system until it no longer functions properly or if his residence should go up for sale, to have the connection completed as part of the conditions for the sale of the residence.
Though the council said they understood Beam's problem, due to state statue, the council said its hands were tied. The council tabled the matter for further investigation.
Members of the Warsaw City Council are Bill Rhoades, Jerry Patterson, George Clemens, Charles Smith, Jeff Grose, Trish Brown and Joe Thallemer. [[In-content Ad]]
Sewer issues dominated the Warsaw City Council meeting Monday.
Part of the meeting was dedicated to a public hearing on an ordinance establishing new rates and charges for the sewer services. No action was taken.
Under the proposed ordinance, the rate and charges for all dwelling units will be increased by $10 to $24.50 per month for each unit. However, for residents with gross income of less than $15,000 per year, the rate will be only $12.25. Rates have not increased since 1989.
The increase will help boost revenues to cover bond issues for a new treatment plant and a collection system. Cost for the treatment plant is estimated at $10.27 million while cost for the collection system is estimated at $6.7 million. Actual bids for the treatment plant will not be let until December or January.
Councilman Joe Thallemer said it was his impression the council needed to raise the rates because they haven't been raised in 12-1/2 years. If the city would have maintained the rates, he said, they wouldn't have to increase them all at once.
"Right," agreed CPA Todd Samuelson, H.J. Umbaugh and Associates, Plymouth. "It's really remarkable the rates have lasted this long."
Umbaugh and Associates are the financial consultants for Warsaw on the sewer projects.
Ruth Hamond, a Warsaw resident, asked why a couple should pay the same rates as a large family.
Warsaw does not own the local water company, Warsaw Mayor Ernie Wiggins said. And not every Warsaw resident is a Indiana American Water Co. customer, he said. Samuelson added that there are some limits on the rate structure and while a flat rate is not the best, it is the least expensive.
Several remonstrators were concerned about how the increase in rates would effect senior citizens and people with fixed incomes. The remonstrators wanted discounts for older residents.
Samuelson said it would be impossible to maintain that kind of system where each person had a different rate based on different factors. "It doesn't work very well from a management standpoint," he said.
No tax, councilman Charles Smith, is totally fair.
One remonstrator asked if the increased rates could be held off for six months to see where the economies of the world are heading, due to the war and factories slowing down.
Wiggins said even if they proceeded today, the treatment plant wouldn't even be online until 2003. The new rates wouldn't go into effect until January. "At some point in time," he said, "we just have to draw a line" and get the numbers nailed down and proceed.
In the past, the council was too conservative in adjusting the rate, causing the need for a large increase this year, Wiggins said. "Sometimes being too fiscally frugal can rear its head" and cause more problems.
The rate increase will be discussed again at the council's November meeting.
In other sewer matters, Dr. Tom Krizmanich, who lives on Deer Trail, told the council he wants his home connected to city sewer and water.
Krizmanich said there are three lots at the end of Deer Trail with sewer connections.
"At this time, I am interested, as are several others," said Krizmanich in hooking up to city sewer. He said they are surrounded by city sewer and "... I think it would be appropriate to put in sewer at Deer Trail."
Scott Bowman, Deer Trail, said he had the same concerns as Krizmanich. Though they may not be able to hook up to city sewer today, he said he'd like to see his home hooked up to city sewer some time down the road.
Lacy Francis, public works superintendent, said approximately 10 homes along Deer Trail don't have city sewer. The homes may be able to hook up to the city's lines eventually. Currently there are no short term plans to do so. The three lots currently with sewer along Deer Trail are hooked up on a private line, he said.
Councilman Jeff Grose asked Wiggins to investigate the issue further with Francis and the neighbors.
"The more information for us, the better," Grose said.
Daniel Beam, Duncan Drive, petitioned the city for the "right to not connect to the sewer system at this time," according to a letter Beam submitted to the council.
Beam does not want to connect to the sewer system because he installed a $7,000 septic system in July 1997. He asked for an extended period of time to allow him to use his new septic system until it no longer functions properly or if his residence should go up for sale, to have the connection completed as part of the conditions for the sale of the residence.
Though the council said they understood Beam's problem, due to state statue, the council said its hands were tied. The council tabled the matter for further investigation.
Members of the Warsaw City Council are Bill Rhoades, Jerry Patterson, George Clemens, Charles Smith, Jeff Grose, Trish Brown and Joe Thallemer. [[In-content Ad]]