Winona Approves Wastewater Rate IncreaseWINONA LAKE – Town attorney Adam Turner swore in Jim Zachary as a new Winona Lake council member Monday.
Zachary replaces Tecy Banta, who he defeated in the May 2019 primary.
Also Monday was Winona Lake’s public hearing for its $9 wastewater rate increase. After an explanation to the audience from Deen Rogers with bakertilly, the 19% increase was unanimously approved. Residents’ wastewater bill will go from $47 per month to $56 per month.
Rogers said his firm conducted a wastewater across-the-board rate study for the town that included looking at 13 months – or 13 bills – and discovered that the cash flow was trending in the wrong direction and that a change in the rate was necessary.
Rogers said the biggest ticket item is paying for the flow to go to Warsaw to be treated. He also said the contract with Inframark through 2022 is a factor; and a plan provided by Tom Miller, public works superintendent, that estimates $555,000 in repairs and upgrades to lift systems and parts and equipment for the next five years, was taken into account. To pay for the utilities, $1,275,800 is needed.
The rate increase should generate about $207,000 based on the number of customers Rogers tested in the flat-rate study. That difference would cushion about two months of operating costs.
“You guys are very fortunate you don’t have any debt outstanding,” Rogers said. “If so, you would have a bond ordinance that would restrict your funds. In this case, you just have an operating fund.”
Rogers said if the town did have debt, a bond ordinance would dictate that the town has to have two months operating in the account at all times, then use any additional money for an improvements fund.
“What I see too often is utilities wait too long to increase rates, then there’s a 30% increase,” he said.
Town Coordinator Craig Allebach said that nine to 10 years ago, the rates were lowered, and stayed down, until 2017 when it increased because of Warsaw’s rates, and then now.
Councilman Jim Lancaster noted that over the past decade, Winona Lake’s rates have increased about 4% each year – holding steady just a little above the increase in cost of living per year.
Council President Rick Swaim said when the town meets with other wastewater officials, the town is praised on how they spend their money and keep things affordable for residents.
The next council meeting is 6 p.m. Jan. 21 in the town hall.
