Winona May Outsource Sewer Bill Processing, Holds Budget Hearing
Posted
Jennifer Peryam-jperyam@timesuniononline.com
WINONA LAKE - Winona Lake is considering outsourcing the processing of its sewer bills and collection to Indiana American Water.
The council heard a presentation from Jeff Henson, Indiana American Water senior manager of business development during its monthly council meeting Tuesday morning.
Henson said Indiana American Water will charge the town $1.15 per customer per month for the accounts that Indiana American Water has for processing of sewer bills if the town approves outsourcing its sewer bills.
For water accounts that Indiana American Water does not have, the processing fee for sewer bills will be $1.32.
Indiana American Water services would include processing the customer's payments and daily transmittal of funds received on the town's behalf.
Winona Lake currently does its water and sewer bills in house for residents and town employees process the billing.
Winona Lake Clerk-Treasurer Retha Hicks said she is concerned outsourcing the town's sewer bills will cause the level of service to go down for town residents.
"We have been talking about shopping and doing things locally and residents are able to pay their bills face to face with town employees," Hicks said.
If the town's sewer bills are outsourced, residents would no longer make payments at the town hall, but be required to mail in payments to an Indiana American Water office in Illinois.
Councilwoman Joy Lohse said the town has had excellent service for paying sewer bills locally.
Council president Terry Howie said he felt the town needs to look at how to save residents money even if it means outsourcing sewer bills.
Councilman Randy Swanson said he wants to make sure tax payer's funds are being spent wisely.
The council will hold a public meeting Oct. 7 at 7 a.m. at town hall to discuss outsourcing the processing of sewer bills and will review a proposal from Indiana American Water.
The council also held a preliminary hearing for its 2011 budget Tuesday.
The town has advertised for its general fund at $1,315,138; motor vehicle highway fund at $680,213; local road and street fund at $110,000; parks and recreation fund at $36,500; economic development income tax fund at $500,000; riverboat fund at $85,000; rainy day fund at $200,000; local law enforcement education fund at $2,500; Winona Lake Redevelopment fund at $300,000; and cumulative capital development fund at $250,000.
The council approved a 2010 amendment to the 2002 sanitary sewage treatment agreement. The agreement states Winona Lake will pay to Warsaw $3.47 per thousand gallons for the receipt and treatment of Winona Lake's treated sewage effluent.
The town previously paid $3.48 per thousand gallons.
Winona Lake hired London Witte Group Inc., an Indianapolis certified public accounting firm, for a cost of service study for wastewater for Winona Lake.
Hicks said Winona Lake's points of disagreement with the Warsaw cost of service study completed in 2005 are that Warsaw changed the denominator from treated flow at the plant to billed flow (the billed flow is a smaller number).
Hicks said Winona Lake residents pay $142,330 more annually for treatment of its sewer than Warsaw residents.
A $1.5 million fine was issued to Warsaw from IDEM from a 2002 incident and was included as an expense in the 2005 cost of study. Warsaw did not pay for the fine.
The denominator is a major factor in determining the sewer rate, Hicks said. Warsaw residents' wastewater is an estimated flow. The estimated billed flow is a smaller amount than actual flow into the plant.
Winona Lake's flow is metered at the beginning of the pipe into Warsaw and there is a meter located at the Warsaw Treatments Plants measuring flow coming in.
The calculation for the expense in 2005 was ammorized for three years, Hicks said. It is now past the three years but the sewer rate to Winona Lake has not been reduced.
In other business the council approved the town purchasing 28 radios for Winona Lake Fire Department from J & K Communications for $50,531.73 to meet the Federal Communication Commission's requirements for radio upgrades.
The council approved a notice to proceed and contract for Phend & Brown to resurface Pierceton Road from CR 250E to Packerton Road today with plans for completion by Nov. 10.
The council approved the town replacing the Wooster Lift Station that is aging and provides wastewater services. It serves the northeast area of Winona Lake along Wooster Road from Kings Highway to CR 250E.
Upcoming events in the town include a fall festival, Northern Indiana Lakes British Car Club and Huzzah Hoosier Pennant Vintage Base Ball Tournament Saturday and the Taste & Trade Expo 2010 at the Orthopaedic Capital Center is on Oct. 15 and 16.
