Rate hikes considered in Geneva (12/07/05)

GENEVA — Water and sewage rates could be going up here sometime next year, and for the first time residents could find a storm water treatment charge added to their bills.

Scott A. Houser, CPA with Summers, Carroll, Whisler LLC, Muncie, presented a lengthy plan to council members Tuesday night that is intended to add revenue to the town’s treatment facilities.

“This is just a discussionary document,” Houser said as he took council members Lew Wingler, Jim Timmons, and Mike Schwartz through each proposed plan.

The last time sewage rates increased was in 1996 and water rates went up in 2000.

Noting that the sewage treatment plant has no debt at the present time, the water department carries a $60,000 debt load.

Houser said the intent to raise rates would allow the town to have enough funds to “write a check” for repairs that would be needed in the future, as opposed to applying for a loan to do the work.

It currently costs the town $224,000 annually to operate the water utility, and $249,000 to maintain the sewage treatment plant.

“The sewage surprised me,” Houser told the council. “You don’t have any debt. You’ve done a wonderful job maintaining the sewage. Most small towns have debt on their sewage. They’re very expensive to maintain. Your plant’s in great shape.”

Houser said some 37 million gallons of water are pumped by the town’s water utility annually to 586 customers. There are 624 sewage utility customers.

Additionally, Houser said plans call for assessing users an additional fee for discharging storm water. There is currently no charge for that storm water.

Houser also recommended the council raise rates in 2006 and slightly again in 2007 to put the town’s utilities in better financial shape.

If council accepts Houser’s recommendations, the average water rate — for 4,000 gallons of water — would increase in 2006 to $18.87 from the current $14.31; sewage would increase to $25.78 from the current $23, with flow charges assessed at $3.51 from the current $3.13; and the added storm water treatment cost would be $2.29 per residential customer.

The average user’s bill would increase by nearly $10 to $54.88 from the current $45, Houser estimated.

“But again, this is just a propository document,” he said.

If council agrees to the increases, with public hearings, the rate could go into effect in March or April.

Additionally Tuesday night, the council learned from Mark Sullivan of Commonwealth Engineering, project manager for the Winchester Road drainage project, that the project is as complete as can be until spring when grass seeding and grading will be done, and the finished project came in at less than expected.

Sullivan said the project bid at $536,209.35 was completed at $503,945.85 — some $25,000 less than the Crosby bid. A Community Focus Fund grant funded $485,000 of the project.

The council approved a substantial completion certificate for Crosby, but decided to complete another walk-through of the project with Commonwealth Engineers after Wingler raised some questions about some of the raised manhole covers.

In other business the council:

•Heard Bret Lott, housing administrator with Madison County Council of Government, say that phase 1 of the housing project at Red Gold had been completed at a cost of $506,575.

Lott said $455,000 of the project came from Indiana Housing Finance Authority grant monies and the remaining $51,575 was contributed by Red Gold. The town served as the fiscal agent for the project that replaces existing housing at the tomato processing plant.

Phase 1 of the project included an 80-bed facility that was fully occupied in July, Lott said.

He told council members that Phase II of the project is expected to get underway in late spring as another grant is being sought from IHFA to provide additional housing.

•Heard Marshal Rob Johnson say that a police cruiser involved in a crash recently had been declared a total loss by the insurance company.

Johnson said a 2005 cruiser was purchased with $14,000 from insurance with the police budget adding the additional $5,000.

•Passed on the first reading a 10-year contract with Insight Communications for TV service.

Clerk-treasurer Doug Milligan noted that the cost for the classic TV package would be increasing to $28.36 from the current $25.41 beginning in January.

The town can continue on the current contract until April 1.

Prior to Tuesday night’s meeting, a public hearing was held to hear opinions from residents about the town’s decision to reapply for $500,000 in Community Development Block Grant money for renovations at the Geneva Public Library.

The town was turned down earlier this year for the same grant.

There were no public comments.[[In-content Ad]]