Rate hike OK'd

Sewer rates in Portland are one step closer to rising.
Members of the Portland City Council approved a 30 percent increase in sewer rates — the first such increase in 10 years — on first reading M Monday following a public hearing.
The second and final reading on the hike is set for April 4.
The city is increasing its rate to fund the $5.8 million north side sewer separation project and other future storm and sanitary sewer separation projects mandated by the Indiana Department of Environmental Management. Earlier this month, city officials learned that Portland had not been awarded a Stellar Communities grant, which would have helped pay for such projects.
“We’ve taken a couple of hits as far as finances,” Portland Mayor Bruce Hosier said Monday. However, the city would have needed to increase sewer rates even if Portland had been awarded the grant, he said.
Only one member of the public addressed the council during the public hearing portion of the meeting.
Bill Boughman, a member of the Jay County Regional Sewer District board of directors and resident of Nan-Del Lane, said he didn’t think it was fair for those who live outside the city limits to help pay for sewer system improvements inside the city.
With the proposed sewer hike, those who live outside the city limits but are connected to the city’s sewer system will see their monthly bills jump to $41.73 from $32.10. The properties outside of the city limits are not metered. For a city customer using 6,000 gallons of water a month, their bills will rise to $39.72 from $30.55 this year.
“If you’re going to use the city of Portland system, then there are rules and guidelines to follow,” Hosier said to Boughman. “We’re not trying to single anyone out.”
“You want us to help pay to separate your water and sewer,” Boughman said. “We was forced to get on (the system).”
“It’s fair for anyone that’s a user,” Hosier said.
An additional sewer rate hike of 27 percent has been proposed for 2012. Hosier added that increasing sewer rates could make the city more competitive for future grants and loans.
Councilman Kip Robinette asked about civil penalties that could be assessed against the city if the storm and sewer separation projects are not completed because funds are not available.
Greg Guerrettaz of Financial Solutions Group Inc., said the minimum fine would be $500 per week, but continued violations could result in the city being fined more than $25,000 a day.
The north side sewer separation project must be completed by the end of 2013. If that deadline is not met, the projects set to be completed after it will be behind schedule, thus resulting in more fines.
“My point was that we eventually pay more penalties … and would have to pass it on to the taxpayers,” Robinette said.
Guerrettaz said that if the 30 percent sewer rate increase is approved on final reading, the hike would take effect in the next billing cycle.
The vote was 5-1 in favor of the hike Monday night. Councilman Kent McClung was not present and councilman Todd Nichols cast the dissenting vote.
“I’ve had more people call me against it than I have for it. They elect me,” Nichols said after the meeting.
In other business Monday, council members:
•Approved a five-year tax abatement for Joyce/Dayton on the purchase of two new pieces of equipment.
The equipment will cost $699,400, help retain 71 jobs and add two more. Members of the Portland Tax Abatement Advisory Committee met prior to the council meeting and recommended that the request be approved.
Tax abatements phase in taxes on new investments over a period of years.
•Learned that city clean-up dates for the year are April 11-15, July 11-15 and Oct. 10-14. All large items — except electronics — will be collected on the normal trash routes. The Freon must be removed from appliances and tagged as such. Hazardous materials and tires will not be picked up.
Jeff Harker, city street and park department superintendent, said electronics — such as televisions, DVD players and cellular phones — can now be taken to Pollution Solution, 2115 East Ind. 32, Winchester, for free. A state law bans electronics from being disposed of at landfills.
•Learned that the city’s Web site now has a link for Portland property owners to file for flood relief and get information about flood aid.
Information about the Jay County Flood Relief Fund can be viewed at www.thecityofportland.net. Residences and businesses that filed a preliminary damage report may be eligible for aid.
“A lot of our neighbors and friends took a tough hit and they need our help,” Hosier said of the Feb. 28 flood.[[In-content Ad]]