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ETNA GREEN - Water rates may be going up in Etna Green, but homeowner insurance rates may go down as a result.
The Etna Green Town Council on Tuesday passed an ordinance increasing water rates to help with the costs of a $1 million water system improvement project. The project includes a new well for the town, some new water mains, looping the mains in town as opposed to the current dead-ends that provide poor water quality to some residents, and installation of about 35 new water hydrants.
Donald Humphrey of Foresight Engineering, Greenwood, said the project entails replacing about 20,000 feet of pipe, or about two-thirds the current system.
The town is funding the project in part with a $500,000 Indiana Department of Commerce grant. The town is also selling $465,000 in bonds, a loan cost which must be paid back.
The jobs, from bids opened last month and tabled for review, were awarded to Cripe Excavating of Syracuse for the water line portion of the project at a cost of $563,580, and to Ortman Drilling of Kokomo for the well portion for $147,785.
John Julian of H.J. Umbaugh & Associates told the handful of citizens in attendance that the revenue generated by the current rates and charges is not enough to pay the projected operating costs of $40,000, the $10,000 annual capital improvements, the loan repayment of principal and interest of about $37,000 per year, and about $7,000 per year to be set aside for a debt service reserve fund.
Raising the annual requirement from $50,000 to $94,000 means the town must raise water rates to meet the increasing costs.
With passage of the new water rate ordinance, the minimum charge for water customers goes from $6.60 per month for residential customers on a 5/8-inch to 3/4-inch meter to $12.35. This is for customers who use 2,000 gallons or less per month. The average customer is estimated to use about 4,000 gallons of water per month, which would create a bill of about $21.40.
Clerk-treasurer Laura Baker said she isn't sure when the new water rates will go into effect, but would find out prior to next month's meeting so that the public can be informed.
Although water customers will be facing increased monthly water bills, Humphrey said the town could impact the ratings for fire protection for the town and lower homeowners insurance premiums because there will be better fire coverage in town.
Etna Green officials have been working toward this water project for several years, but at least one resident is concerned that the $1 million project and subsequent need to raise rates was slipped through without the public's knowledge.
Jerry Richardson said he is concerned that not many people in town are aware of what's going on and questioned what can be done to change that.
"If people would come to the town council meetings, they would know," said councilman Keith Robbins. "It's not like we decided to do this yesterday."
"You're not even prepared for the fit the people will throw when their rates go up," Richardson said. "People will think something there's underhanded or something going on behind people's backs."
Baker said the council cannot act without first having discussions, motions and approvals, all of which are documented in the minutes of the meetings and are subject to a checks and balances system with the State Board of Accounts. "We can't do things on the sly," she said. "It can't be done."
"Most people are aware of the council meetings but choose not to come so they can complain later," said council president Andy Cook.
"It's something the town's needed," Cook said. "There hasn't been any improvements on this system since who knows when." He added that the town has not had a water rate increase in 11 years. "Tell me what else hasn't gone up in 11 years."
In a related matter, Tom Feldman said he and his brothers will not sign an easement to their property which adjoins the location chosen for the new well field unless some of the wording is changed. He also questioned the amount of area necessary around the well, indicating that an Indiana Department of Environmental Management representative said only a 50-foot diameter is required vs. the 200-foot diameter sought by the town.
The town is seeking a 160-foot deep and 200-foot wide easement.
An executive session with the Feldmans, an IDEM representative, Humphrey and attorneys will be set for as soon as possible to resolve this matter.
The next regular meeting is at 6 p.m. March 9 in the Heritage Park building.
