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Winona's Rate Request With Warsaw Backfires

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Winona Lake's request for a reduced sewer rate from the city of Warsaw has apparently backfired.

The city of Warsaw balked at a request from the town of Winona Lake for a cheaper sewer rate.

Worse yet, Winona Lake officials, who believed a meter was charging the town too much, found out just the opposite after it was replaced.

Warsaw's board of works on Friday approved a tentative agreement that calls for the same rate as in the past.

Winona Lake will now likely approve the new five-year deal. Town council president Brent Wilcoxson said they have no other choice.

As a result, the town will implement a $2 hike on sewer bills beginning Jan. 1. The hike was tentatively approved with the hopes it would be rescinded if Warsaw provided some relief.

With the hike, town residents will pay a monthly charge of $29. Warsaw residents pay $14.50 per month.

"We're extremely disappointed given the fact our citizens will pay exactly twice as much as Warsaw citizens," Wilcoxson said.

"At this point in time, we kind of feel maybe we're being held hostage," he said.

Winona Lake officials earlier this year appealed to Warsaw for a rate reduction and claimed they might have been overcharged because of a meter malfunction. The meter was replaced this summer and has since shown the town was being undercharged.

Wilcoxson said they believe the new meter rating could double the amount Winona Lake pays Warsaw.

"They could have given us a 50 percent reduction and not affected their cash flow," Wilcoxson said.

The town asked the city to reduce its rate by one third.

Board of works member Mac Silveus said there are larger industrial users than the town and that it would be unfair to give the town a discount.

Mayor Ernie Wiggins suggested a discount for the town would have required a rate increase for city residents, something he wasn't interested in doing.

Winona Lake in 1997 will pay the city about $180,000 for the service.

Wilcoxson said he estimates next year's sewer charges could reach $220,000.

The lack of cooperation has Wilcoxson wishing the town could construct its own sewer treatment plant, but he admitted such an effort is not feasible.

Winona Lake's effluent represents about 10 percent of the overall waste treated by the city.

Leaders differ on philosophies of the sewer arrangement. Warsaw public works superintendent Kim Leake pointed out that industry pays taxes in addition to the sewer bill.

Wilcoxson says Warsaw should subsidize its sewer maintenance on what it charges Winona Lake.

The city's sewer system has been over capacity for years and officials have sought, to no avail, to expand the utility by establishing an economic development income tax.

The city of Warsaw has expressed an interest in forming a regional treatment plant that could potentially serve nearby communities, including Leesburg and Winona Lake.

But towns might think twice about working with Warsaw, Wilcoxson said.

"If this is how other municipal rates are going to be established, I'm not sure they would be really interested in cooperating," Wilcoxson said.