WINONA LAKE - The town council is considering an increase in sewer fees to cover an estimated $78,000 operating deficit for the 1999 fiscal year.
"The current $29 (per month) rate would result in a $78,000 deficit next year. The rate would have to be $33 to cover the entire deficit," Brent Wilcoxson, council president, said Tuesday. "The bottom line is a 14 percent increase would be needed (to cover the deficit, and) to meet state requirements."
Wilcoxson added that the increase is necessary even though the sewer department has done a good job controlling costs.
The town faces three options, Wilcoxson said, in addressing the projected deficit: cover it entirely with a rate increase, leave the rates the same and fund it from the town's reserves, or something between those two extremes.
"We have $400,000 in the operating reserve fund, but we are looking to make some improvements to the sewer system and will need most of the funds for that," he said. "So, we'll probably have to raise the rates at least a couple of dollars, to maybe $31 per month."
A major problem with the sewer system that will need to be corrected is storm water infiltration into the sewer lines. Winona Lake contracts with Warsaw for wastewater treatment and is charged by the volume of water treated, Wilcoxson said.
"Forty-five percent of our operating costs (due to the infiltration) are going down the sewer, so to speak," Wilcoxson said.
In other business, the council:
Passed, on first reading, Ordinance 98-7-1, which establish street cut fees and weight limits for all town streets. Utility contractors needing to make street cuts will be required to post a $1,000 bond, of which $950 will be refunded upon completion and inspection of the cut.
The weight limit portion establishes a 50,000-pound total weight limit, or 10,000 pounds per axle weight restriction;
Approved, pending Plan Commission approval, a request by Grace Brethren Home Mission to name their driveway Kingsway Drive. The council's approval was needed to establish a legal address for mail delivery;
Clerk-treasurer Retha Hicks announced the town will conduct a public auction Aug. 25 for the sale of a third-of-an-acre lot on Sunset Drive. Sealed bids are now being accepted.