Continuously serving Kosciusko County since 1854
MENTONE - After studying Mentone's sewer and water rates, H.J. Umbaugh & Associates proposed the town hike its water rates 49.8 percent and its sewer rates 54.6 percent across the board.
But at a special meeting Monday, utilities superintendent Brian Reed said he thought that was a little high. He suggested raising the water rates 25 percent and the sewer rates 50 percent across the board. The proposed increases would happen all at one time instead of being phased in.
Under the proposed increases from H.J. Umbaugh & Associates, a residential water bill with a minimum monthly water bill of $12.81, based on 2,000 gallons of water usage, would increase to $19.19. Sewer would increase from $9.30 to $14.38.
Discussing the sewer rates, town clerk-treasurer Barbara Ross said 38 percent of the town's customers, approximately 134, had the minimum monthly bill of 2,000 gallons per month or less. Councilman Jack Simpson said that compared to the state average, Mentone's rates still were low.
Reed said Umbaugh's study of increasing the sewer rate 54.6 percent was pretty close to the 50 percent increase he thinks the town needs to cover its expenses. The minimum user's bill will go up less than $5, "which is fairly reasonable, I think."
In 1998, Ross said, the sewer rate decreased while the water rate increased.
"Sewer never had an increase. It only had a decrease," said Reed.
The water rate is where Reed said he disagreed with Umbaugh's study. "I don't know where they came up with 50 percent, but I'm not a CPA either." Even with the loss of revenue after Mentone Egg left, Reed said, "I don't see the 49.8 percent at all." He figured a 25 percent increase would be sufficient.
Under Reed's proposal, for someone who used an average of 5,000 gallons per month, the new water rate would be about $34.31, sewer $29.73 and trash pickup $5 for an average bill of $69.04. Under the old rates, that same bill for 5,000 gallons would be $47.45.
Simpson said the town should have been at these rates four years ago.
Reed said in two or three years, the town can revisit the rates and make any adjustments if necessary but didn't think the town would have to raise them so soon.
"We're playing catch up as it is," Mark Hughes, council president, said.
Tim Croy, councilman, said he doesn't know why the sewer rate was dropped previously.
"That was not a good idea," agreed Reed.
Even with the proposed increases, the customers are still getting three utilities - water, sewer and trash pickup - Simpson said. "The big users are going to go up a little more but most of them save cause they don't have trash pickup anyway."
"I like your numbers better than theirs," Hughes told Reed.
Ross will contact H.J. Umbaugh & Associates and ask them to prepare new figure studies for the town based on raising the water rate 25 percent and the sewer 50 percent. If possible, the council hopes to review the new study at its Sept. 13 meeting or Oct. 4 meeting.
