Opposition greets move to leave IURC (12/13/05)

DUNKIRK — Opposition surfaced Monday night to plans to have this city’s water utility withdraw from the jurisdiction of the Indiana Utility Regulatory Commission.

However, after a public hearing on the topic which lasted about an hour, Dunkirk council members unanimously approved a motion to adopt an ordinance to have the city withdraw from the IURC, possibly setting the stage for a city-wide voter referendum on the issue.

The motion, which has the backing of Mayor Sam Hubbard, was introduced by Connie Whetsel, council member in charge of the city water department, and approved by council members Craig Faulkner, Larry Smith, Whetsel and Tom Johnson. Councilman James Doughty was absent from the meeting.

Once the ordinance is adopted, city voters will have 60 days to petition for a referendum on the issue. It would then be up to the city voters to decide the question, Dunkirk city attorney William Hinkle said. The petition will only need the signatures of 15 registered voters to require the referendum.

Even before the council’s vote was taken, Dunkirk resident Rev. Jerry L. Holten, pastor of First Pentecostal Church, 216 E. Ohio St., Dunkirk, said he thought the matter should be resolved by a referendum.

Holten indicated Monday night that he plans to circulate such a petition, starting with his church members.

About half a dozen other city residents were in attendance at the public hearing. However, Holten did most of the talking. He questioned if city officials were qualified to oversee water quality and rates. City water department superintendent Dace Mumbower explained that a variety of state agencies monitor whether city water is safe to drink and that would continue with or without IURC supervision.

Hinkle said that whether the city council or IURC was in charge of setting water bill rates, an independent accounting firm would first be contacted to make recommendations and a rate study.

Whetsel emphasized that she and other council members were not doing this to raise water rates but to gain more flexibility on financial matters for the water department in order to make needed improvements. Hinkle said that going through the process of gaining IURC approval for a water rate change takes time and usually costs at least $5,000 more than if the city council could just adjust the rates.

Saying he favored the IURC concept, Holten said, “I voted for Sam. I believe he is a good mayor for the city, but what about the next mayor?”

Whetsel said that whenever the topic of the IURC is mentioned, people think the council wants to raise water rates. “We don’t want to raise the rates. We want to withdraw from the IURC and make some changes to improve the water system,” she said.

Hinkle said that without the IURC, citizens would still have a direct voice in the decision-making process. The citizens would have the option of voting out any council members who they thought wanted to arbitrarily increase water rates, he said.

“We’re trying to do what’s best for the city, and we pay water bills, too,” councilman Craig Faulkner said.

Whetsel added, “We pay the same water bills you do, and we have the same rusty water you do. I’m not going to raise water rates until there is a way to improve the water.”

In other business at Monday’s meeting, council members:

• Heard Hubbard report that state officials now say the Ind. 167 highway improvement project, scheduled for next year, has been pushed back to 2007 at the earliest. Hubbard said that right now “the funding has not been appropriated” for the project.

• Noted that due to the Christmas holiday, the next regular city council session would begin at 6 p.m. on Thursday, Dec. 29.

• Heard that the next Dunkirk Improvement Committee meeting would begin at 6 p.m. on Wednesday, Dec. 14.[[In-content Ad]]