The Crothersville Town Council unanimously approved an Indianapolis consulting firm recommendation that would provide double digit rate increases for both the water and sewer utilities for the customers in 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 November’s council meeting, Ross Hagen of Baker Tilly showed that the town needs a 13.66% increase in sewer rates and a 51.7% increase for water to meet operational expenses.
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.
However, Clerk-Treasurer Danieta Foster pointed out that while the percentages would remain the same, the exampled consumption used by the rate consultant is higher than most Crothersville utility customers use each month.
She provided numbers for fewer gallons consumed and a total monthly utility bill.
“Many of our customers forget that their monthly bill is not just for water and sewer but also includes trash collection, recycling, and storm water fees,” she said
A customer using 1,000 gallons of water is currently paying $85.93 per month for all services. That is projected to increase by about $15 to $100.95, she said.
For a consumption of 2,000 gallons, the monthly utility bill would go from $99.32 to $118.56, less than a $20 increase.
A customer using 3,000 gallons of water is currently paying $117.56 for all town services and that is projected to increase to $141.14, she said.
The last increase in sewer rates was approved by the town council in December 2017. The last water rate increase was approved in 2019 with annual incremental increases over five years.
By comparison, Foster told the council that (Duke Energy’s) electric rates went up three times in the past two years.
“Unfortunately, we have to make increases to stay afloat,” said council president Terry Richey.
The council was unanimous in voting to move forward with a public hearing on proposed rate increases. A public hearing is expected to be scheduled sometime after the first of the year.