Redkey considers hike (01/09/2009)

REDKEY - A 60 percent water rate increase is being considered to fund major improvements to the town's water distribution system.

Although grants and loans have been earmarked for the project, the water rate hike will also be necessary, accounting consultant Scott Houser told Redkey Town Council members Thursday night.

Houser is a CPA with Summers, Carroll, Whisler LLC Certified Public Accountants of Muncie.

The proposed rate hike, currently in draft form, would mean that an average household using 4,000 gallons of water a month will see an increase in the water usage portion of its bill from $21.84 to $34.94 - a monthly increase of $13.10.

Wastewater treatment charges would remain the same.

The sewer charge for using 4,000 gallons of water a month is $28.58 and that figure would remain the same. A total water/sewer bill, including taxes, for the 4,000 gallons a month figure would increase from $51.95 to $65.97.

Redkey's last water rate increase was approved in the spring of 2007. It was approximately a 50 percent increase designed to keep pace with operating expenses at that time, town clerk-treasurer Sandy Kirby said. The latest increase would help fund improvements to the system, she pointed out.

In presenting his 15-page report, Houser said, "This is my first draft."

He noted that the overall water system improvement project is estimated to total $2.2 million with the Indiana Office of Community and Rural Affairs contributing a $500,000 grant, the U.S. Department of Agriculture Rural Development Agency providing a $220,000 grant and loans totaling about $1.5 million.

The improvements will upgrade water mains in the community as well as replace the water plant and elevated water tower tank which was purchased used about 100 years ago.

The loan payments will be spread over 39 years at an interest rate of 4.5 percent. The first payment is not expected to be due until July 1, 2010, Houser said, noting that details of this arrangement have yet to be finalized.

A public hearing will be held before any rate hike becomes official, Houser added.

Redkey town attorney John Brooke and several of council members thanked Houser for his efforts and directed him to proceed with the project.

Brooke called the work "outstanding."

In other business at Thursday night's special meeting, council members:

•Re-elected Doug Stanley to serve as council president and Quakenbush as vice president of the council.

•Heard Stanley announce that the council assignments for 2009 would remain the same.

Quakenbush will supervise the fire department. Stanley will supervise the wastewater treatment department. Other assignments will include: Terri Taylor, street and water departments; Phil Philebaum, police department; and Charles Noble, parks department.

•Postponed next week's regularly scheduled council meeting until 6 p.m. Thursday, Jan. 22, in town hall, 20 S. Ash St.

•Approved renting a lift-truck from Jon Davis of Redkey for $100 a day and replacing street light bulbs in the downtown area at a cost of $12 a light. The total cost is not expected to exceed $300, town officials said.

•Approved the purchase of an underground water line locater from Midwest Meter Inc. of Edinburg, Ill., for $3,500. Taylor recommended purchasing this piece of equipment in light of all the roadway and water main replacement construction expected to occur in the coming year. Houser said cost of the equipment may be reimbursed through the USDA grant.[[In-content Ad]]