The Crothersville Town Council unanimously approved holding a public hearing on Feb. 3 to get residents’ input on double digit rate increases for both the water and sewer utilities for customers in the town of Crothersville.
Baker Tilly, an accounting and consulting firm from Indianapolis, was hired earlier last 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 last month 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 2020. 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.
One change the council may make is to sewer charges for customers not on the town’s metered water supply. The rate study indicated that those customers should pay $120 per month for sewer but the council is adjusting that to $86.54 per month. There are 15 customers impacted by the change.
By a 4-0 vote (with Jason Hillenburg absent from the meeting) the council approved first readings to water and sewer rate ordinances.
The public hearing is scheduled for 6 p.m. prior to the council’s regular Feb. 3 meeting.
In other organizational business, Terry Richey was retained as council president and Jason Hillenburg was retained as vice-president.
County EMA Director and Vernon Township resident Toby Ortman was re-appointed as the town’s representative on the Homeland Security Board and Curt Kovener was re-appointed to represent Crothersville on Jackson County Industrial Development Corporation.