An Indianapolis consulting firm is recommending double digit rate increases for both the water and sewer utilities for the town of Crothersville.
Baker Tilly, an accounting and consulting firm, was hired earlier this year to conduct a rate study for the town’s water and sewer utilities.
At last Tuesday’s November council meeting, Ross Hagen of Baker Tilly showed that the town needs a 13.66% increase in sewer rates and a whopping 51.7% increase for water.
The last increase in sewer rates was approved by the town council in December 2020.
While sewer revenues have remained fairly steady since that time, expenses, maintenance costs, insurance and salaries have increased resulting in a little over $114,000 needed increase in annual sewer revenue.
The proposed 13.66% increase would mean about $10.45 increase from the current $76.50 to $86.95 for a consumer of 4,000 gallons of water.
Hagen showed that he town’s current sewer rate of $76.50 is higher than the state average of $56.12. Much of that higher than average bill is due to paying for the work mandated by IDEM to eliminate Crothersville’s Combined Sewer Overflow earlier this decade.
Hagen pointed out that the town’s water rate increase is higher than anticipated “because you have one of the lowest water rates in the area,” he said.
The last water rate increase was approved in 2019 with annual incremental increases over five years.
With a 4,000 gallon monthly consumption a current water customer pays $36.08, well below the statewide average of $44.21, according to Baker Tilly
That 4,000 gallon of consumption would see a user going from the current $36.08 to $54.72, a nearly $19 increase.
That increase was derived similarly like the sewer: water expenses have increased, water revenue has not. The rate consultant showed that an additional nearly $239,000 revenue is needed to match annual expenses.
Clerk-Treasurer Danieta Foster pointed out that nearly all residential consumers use less than 3,000 gallons per month with many single households using a little over 2,000 gallon monthly.
The council took no action on the rate consultant’s report opting to revisit the matter at their Dec. 2 meeting to consider introducing any rate increases.
In other business, he council declined to close Short Street. Two property owners along the street between Main and Moore Street had requested the street be closed due to anticipated increased traffic resulting from rumors of a tiny home development planned at the east end of Short Street.
However, Bryant Layman, owner of the property at the end of Short Street said he had no plans for such a development.
It was pointed out that if Short Street were closed the town would no longer maintain it and provide snow removal. That would become the responsibility of the adjoining property owners. And that the current property owners would be landlocked and unable to sell their property
“There have been a lot of rumors and people saying things that aren’t true about any development,” said council president Terry Richey. “I just feel we can’t shut that road.”
Layman did request and received approval to construct two homes of the property he recently purchased at the end of Short Street. But his request was to construct the homes on the property’s east end on Preston Street.
•No action was taken on continuing fluoridating the town’s water supply. It was reported that the fluoridation system was off-line due to equipment failure.
•The council approved the purchase of a utility truck from John Jones GM at a cost not to exceed $50,000. Among the truck’s uses would be to plow snow and spread salt.
•It was announced that the town Christmas parade would start at 6 p.m. on Saturday, Dec. 6 beginning at the school, traveling south on Preston, west on Moore, north on US 31, then east on Howard Street ending at Hamacher Hall.
•The council decided to continue the holiday tradition of the community contest, Light Up Crothersville. Details will be announced later.