Continuously serving Kosciusko County since 1854
MENTONE - Mentone moved closer to its water project Monday, approving an increase in water rates, a bond sale and action to gain easements before the May 20 deadline.
A 61 percent increase in water rates that will fund the pending Mentone water project was put into effect at Monday's town council meeting. The increase will mean an approximately $8.31 hike for the average 4,000-gallon user.
John D. Julien, CPA with H.J. Umbaugh and Associates, Plymouth, told the council the proposed funding of the project through Lake City Bank may not be the best deal the town could get. According to Julien, the 6.4 percent LCB offered the town over 15 years is not as competitive as the group's 5.7 percent market estimate.
The difference between the LCB rate and the rate estimated by the group would cost the town an additional $48,000 over the life of the project, Julien said. The cost of selling the project on the open market would be $5,000, the accountant added.
The town would be ahead to sell the project as a temporary bond issue, a bond anticipation note, Julien said. When the project is completed the issue would be sold on open bond market.
Council member Forrest Kantner suggested the town finance the project temporarily, as the accounting firm suggested. Kantner noted that the $40,000-plus potential savings would benefit the town.
In a related issue, water utility director Brian Reed told the council a few easements for the pending project have not been obtained. Reed said a Mentone resident has requested $700 for an easement, while another is hesitant to give the easement because it will shrink two lots.
Reed expressed concern about meeting the May 16 deadline for obtaining the easements.
The council suggested offering the first landowner $500 for his easement and contacting the engineer firm concerning the second situation.
Also during the meeting, town marshal Tim Carpenter questioned the nonpayment of a bill for emergency tree removal.
During an April windstorm a tree blew down, blocking a town street. Carpenter requested removal of the tree, which resulted in an $1,800 bill.
Part of the bill - $800 - was payed by an insurance policy held by one of the parties involved. But the $1,000 shortfall fell to the town.
After a lengthy discussion in which the tree removal service offered to donate the cost to the town the council agreed to pay the remainder of the bill.
In other business:
• The town gave $400 to the park board for continuing improvement at the park. Park board coordinator Jeff Beasley told the council improvements, including a new walking path, had begun at the park.
• The following items will be picked up in the May 16 Spring Cleanup Day: brush and limbs cut to 3 feet, metal bar stock less than 5 feet long, latex base paint, empty cardboard boxes, stoves, washers, dryers, furniture and refrigerators that have been tagged and certified free of freon.
