SOUTH WHITLEY – At Tuesday night's meeting, the South Whitley Town Council heard from Baker Tilly consultants Brent Duncan and Jeff Rowe, who presented financial reports on the town's utilities including water, sewer and electric.
Duncan said total funds for the water and sewer utility have been steady since 2023, with healthy operating funds for both.
Ahead of cuts expected in 2027 due to Senate Bill 1 and the discontinuation of local income tax (LIT), Baker Tilly recommends the council begin planning ahead for losses in revenue.
Duncan provided two options for the sewer utility: to either spend $128,000 from the capital improvement fund and avoid a rate increase this year, or to enact a 3% rate increase, which would bring the current household minimum from $90.28 to $93.04.
Rowe presented the report for the electric utility, whose cash balances have decreased from $962,000 in 2022 to $439,000 in 2023 to $161,000 in 2024. Since the recommended minimum balance for this utility is $435,000, Baker Tilly recommends a rate increase to build back reserves.
A current bill for 1,000 kilowatts is $99.37, which is on the lower end of electric rates for similar-sized communities, said Rowe. Of the two rate increase scenarios presented, a 20% increase would add $20 to a 1,000-kilowatt bill, and a 31% increase would add $30.81.
Clerk-Treasurer Alyssa Knepple said the average residential usage per month in South Whitley is only around 600 kilowatts.
Council could not recall the last time the electric rate was increased. Town attorney Gregg Hockemeyer said he would check his records for that information.
In other business, council:
• Approved a new South Whitley Police Department shift calendar with 12-hour shifts for officers and eight-hour days Monday through Friday for the town marshal, who will still fill in as needed.
• Heard a DLZ update for Community Crossings projects and the new ADA/Title VI requirements.
• Reminded the public the clerk's office will be closed Thursday, Sept. 25 from 10 a.m. to 1:30 p.m. but will be open Friday, Sept. 26.
Council will next meet at 6:30 p.m. Oct. 14.