Dunkirk rate hike approved

DUNKIRK - Starting with the June bills, residents will be paying an additional 20 percent for water service to help fund major improvements to the city's plant and distribution system.

Dunkirk council members Monday night unanimously approved the increase as recommended by financial consultants, H.J. Umbaugh & Associates, Indianapolis.

Also approved was the issuance of bonds to help fund the project.

The city has been approved for a $2.5 million State Revolving Fund loan at a maximum interest rate of 4 percent. However, the city's financial consultants explained that actual costs should be well below the $2.5 million mark because the construction bids were lower than the engineer's estimates and state grant funds would be used to offset some of the costs, too.

The city was awarded $642,500 in state grant funds through the Indiana Office of Community and Rural Affairs.

Thomas Michalak, representing Umbaugh, described the need for the 20 percent water rate increase, noting that an average monthly bill for 533 cubic feet of water will increase to $35.70 from $29.75.

Originally, a water rate increase of 30 to 37 percent had been projected for a less extensive project without receiving any state grant funds, city officials said.

In other action, council members:

•Set a special meeting for Thursday, May 6 at 4:30 p.m. at city hall to discuss possible cuts in the current year budget in response to recent notices from the Jay and Blackford County auditor's offices that income figures in Dunkirk's 2010 budget had been reduced by $57,000.

•Learned that procedures were on schedule to open the Dunkirk City Pool in June.

•Heard a presentation from Jay County Development Corporation executive director Bill Bradley about establishing a redevelopment commission for the city.

•Heard a report about renewing the city's insurance liability policy from Bob Brown of Barnum-Brown Insurance Agency, Dunkirk. Several new items will need to be added to the policy, Brown explained, including an extra $250 a year for accidental death coverage on the city's new police dog.

The new auto and liability insurance coverage policy will total $64,000, representing an increase of $2,850 over last year's policy, Jane Kesler, city clerk-treasurer, said.

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