Mentone Council Told They May Need To Increase Water Rate
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Jackie Gorski-jgorski@timesuniononline.com
MENTONE – A representative from Baker Tilly updated the Mentone Town Council Wednesday on a rate study the accounting firm did for the town’s water utility.
Mentone Town Council approved the study in August. The study came up after Clerk-Treasurer Amanda Yaprak said she talked with representatives of Baker Tilly and was told the utility receipt tax (URT) was repealed effective July 30. The URT is the tax imposed on the taxable gross receipts of an entity providing the retail sale of utility services.
Wednesday, Ross Hagan, a certified public accountant from Baker Tilly, said at the end of the time frame looked at, the water utility’s operating fund was a little over $200,000. The depreciation fund had about a $117,000 fund. He said all the funds had over the minimum required amounts in them.
There is no outstanding debt for the utility, he said. He said the net annual revenue requirements is about $194,000. Hagan said the utility brings in about $150,000 in receipts annually, which means the utility is running on a deficit.
For 4,000 gallons a month, a resident’s bill would be about $27.44 a month. Hagan said after a pro-rate increase, the rate was suggested to be increased to $35, which is a 28% increase. He said the rate could possibly be phased out over a couple years.
Hagan said the council has had its current rate since 2004.
In order for the council to approve a rate increase, they would have to hold public hearings on the rate increase.
No decision was made Wednesday.
Earlier in the meeting, Jim Moyer, from the Kosciusko County Surveyor’s Office, said he will be doing a project on the drainage ditch that flows through Mentzer Park. While he’s in the area, he’s willing to remove trees and brush from the area.
Councilman Tim Croy asked if Moyer would get rid of all the trees. Moyer said he doesn’t have to. He said he is willing to work with the town to see what they want. He said he see what he calls “third-rate trees,” and once they grow, they get unruly and he would like to take those out now.
Moyer said he could possibly work from the bridge in the area north and mark the trees that would be taken out. At his level, Moyer said it’s effective to work with contractors. He said he would be with the contractors.
There would be no cost to the town as all residents pay a drain maintenance tax, which is where the money would come from, he said.
He said he didn’t need a decision Wednesday, but would like a decision by the council’s March meeting. He said, if approved, he would like to start the project in late spring or early summer.
Council President Jill Gross suggested the council possibly walk the area with Utilities Superintendent Josh Shepherd and Moyer before making a decision. Gross said they would be in touch with Moyer about doing a walk of the area and they would make a decision at their March 1 meeting.
In other business, the council:
• Heard from Leisa Norman. She said her parents’ house is up for sale and had several people take a look at it. However, the consensus from those that looked at the house, she said is no one wants to put a bid on it due to a neighboring property being “trashy,” with trash and clutter on the property. She wondered if anything can be done.
Croy said there is an ordinance in regards to what Norman is talking about.
Town attorney Andrew Grossnickle said he would take a look into it, possibly starting out with a letter depending on what the process is in the town’s ordinance. Gross said the council would keep Norman informed.
• Approved an annual service agreement with Kosciusko Economic Development Corporation for $3,000.
• Heard from Hannah Beliles about an ordinance regarding residents owning chickens in town limits.
Beliles has brought the topic to the council before with the first time being in June 2020. At that time, Gross said it might be an issue the council may have to talk about for a while.
Wednesday, Beliles said she was bringing the ordinance in front of the council again due to predictions of shortages and inflation in regards to eggs. No decision was made Wednesday.
