Redkey OK's 50-percent hike (02/20/2009)

REDKEY - Responding to concerns and suggestions from the public, town council members Thursday reduced a proposed hike in water rates to 50 percent from 60 percent and agreed to investigate the possibility of using economic development income tax (EDIT) money to help fund improves to the town's water system.

The ordinance authorizing the 50 percent increase was approved on a 4-1 vote with council member Charles Noble voting against it, and council president Doug Stanley and members Phil Philebaum, Dottie Quakenbush and Terri Taylor voting in favor of the increase.

Redkey clerk-treasurer Sandy Kirby said the new rates will take effect with the May water billing cycle.

Use of the EDIT money could reduce the burden on water users, Stanley said, adding that first he would ask the town's financial consultant, Scott Houser, with Summers, Carroll, Whisler LLC Certified Public Accountants, Muncie, to provide an analysis of what the savings would be in the long run.

The use of EDIT funds for the water project was raised at a public hearing earlier this month by former town council president Nick Simos. The project is expected to cost about $2.2 million.

Stanley said Thursday that Houser was able to reduce the proposed increase to 50 percent following the public hearing.

This means that an average customer using 4,000 gallons of water a month would see the water portion of his or her bill increase to $32.76 from $21.84.

Rates for wastewater treatment and garbage collection will remain the same.

Improvements slated include an updated water plant, a new above-ground water storage tank with more capacity, and replacement of water mains.

Bids were recently opened for this work, and the town has been awarded a grant of $500,000 from the Indiana Office of Community and Rural Affairs as well as a grant of $220,000 from the U.S. Department of Agriculture's Department of Rural Development to complete the project.

The town has been approved for a $1.5 million loan from the USDA for the project. That loan will be repaid over 39 years at 4.5 percent interest.

Also the USDA has earmarked a $1.5 million loan to help fund the work. This money is scheduled to be paid back at an interest rate of 4.5 percent over a 39-year period, town officials said.

Stanley explained that the use of EDIT funds for the project could be used to reduce the amount of the USDA loan. Town attorney John Brooke agreed, saying: "If additional funds from other sources come in, you could reduce it."

Noble said he didn't think that would ever happen, and later cited that as a reason why he voted against the proposed rate hike. At past meetings, Noble has consistently voted with the council majority in favor of the water improvement project.

Stanley said council members intended to approach Redkey Economic Development Corporation board members to discuss the possible use of the EDIT funds for the water project.

Also speaking out at Thursday night's meeting was Simos who commented, "I'm afraid we're going to run some people out of town with this water rate increase."

In other business at Thursday's meeting council members:

•Agreed to consider changing requirements relating to mobile homes being located within the town limits.

•Discussed the need for improving the house numbering system in the community for address and emergency response purposes. Fire Chief Randy Young said that some homes do not have house numbers on them, making it hard for fire department and ambulance personnel to locate the homes quickly in emergency situations. Young and Redkey Marshal Donnie James also pointed out that some addresses do not follow a logical order, even when they are posted.

Stanley said that he and Taylor would work with James and Young and the 911 emergency response system officials to help correct the situation.

"It's really for the residents' own safety," Young said.

•Listened to Taylor compliment town employees for their work in clearing streets of snow and ice. She said she had personally received several compliments about the town's efforts.

•Approved spending approximately $1,000 to purchase signs, cones and barricades to be used in connection with construction work planned for spring, summer and fall. Taylor said the town needs signs visible at night. Also she pointed out that currently the town only has one orange cone.

•Noted that recent strong winds had damaged the roof to a town wastewater lift station and that rain had leaked into the building and shorted out one of two pumps at the station. Council members said they will check with the town's insurance company to see if repair or replacement of the pump will be covered.[[In-content Ad]]