Increase delayed

Portland residents won’t see a sewer rate increase July 1. But a hike could still be coming later this year.

Portland City Council chose not to vote on raising sewer rates at its meeting Monday night.

Council discussed the increase and heard comments from the public, but when it came time to make a motion for action on the rate hike resolution, no council members spoke in favor of a vote.

If passed, the proposed increases would help cover the costs of $3.3 million in state-mandated improvements to the city’s wastewater treatment plant and complete the long-term project separating the city’s sewer system.

Jeff Rowe of Umbaugh and Associates presented findings from a rate study conducted by the firm that looks at what kind of increases are necessary to fund upgrades to the city’s wastewater infrastructure as a part of two agreed orders with Indiana Department of Environmental Management. He said the proposed increases would cost the average residential consumer, who uses 4,000 gallons a month, about $5.75 per month more starting July 1. That hike would be followed by rate increases of $5.75 in 2018, 2019 and 2020. In other words, residents paying $34.56 a month now would see their rate increase to $40.31 this year, $46.06 in 2018, $51.81 in 2019 and $57.56 in 2020.

Rowe said the increases will help pay for a number of capital improvement projects planned in the next five years, beginning with upgrades to the treatment capabilities of the city’s wastewater treatment plant.

Other projects include the Harrison Street sewer separation project, which is expected to mitigate flooding issues, and the future installation of an equalization basin at the treatment plant, which will help increase capacity and prevent future combined sewer discharges during periods of high rain.

“Going forward, there is a significant amount of capital improvements that are planned over the next five years,” Rowe said. “Based on what’s been identified through 2021, through the sewage works, there is roughly $18.9 million identified in capital project needs.”

During the public comment period of the meeting, a number of city and county residents expressed concerns about the proposed hikes.

Michael Craig told council that he wants to see more contribution from the state in the proposed improvements to the city’s wastewater facilities. He expressed concerns that though the rate hike wouldn’t break him financially, it could have a major impact on low-income Portland residents.

Jim Sanders cast doubt on the accuracy of Rowe’s rate projections and questioned whether the city had sought outside funding sources.

“I know Jeff’s put these things together, but he doesn’t care. He’s going to get paid no matter what,” Sanders said. “Has anybody even checked in to the grants? Does anybody even know how to write a grant?”

In 2016, Portland received a $600,000 grant from the Office of Community and Rural Affairs to go toward improvements at the city’s wastewater treatment plant. Mayor Randy Geesaman and Ami Huffman, Jay County’s director of community development, are meeting again with representatives from OCRA today, Geesaman said.

John Brooke, an attorney representing Jay County Regional Sewer District, argued that the rate increases for class II, unmetered sewers for residents living outside the city limits were above a reasonable rate.

“What I didn’t hear from your rate consultant tonight was the justification for why there is a 36.5-percent surcharge for class II users over class I users,” Brooke said. “Particularly when it comes to the Jay County Regional Sewer District. The sewer district is not contributing to your inflow and infiltration problem at all, because the system is virtually brand new. There is no debt service that the City of Portland has because this district takes care of its own debt.”

According to city officials, the 36.5 percent surcharge had been in place before the proposal of the new rates.

Council member Judy Aker made a motion that council table a decision on the first reading of the rate hike resolution until its next meeting, but it was not met with a second from council.

Then, no additional motions were made by council members Janet Powers, Bill Gibson, Michele Brewster, Kent McClung, Don Gillespie or Aker, absent Judy Hedges, effectively tabling the resolution until it is brought back up in the future.

After the meeting, Powers, Gibson, McClung, Gillespie and Aker said they will be ready to cast a vote on the first reading of the proposed increases at the next city council meeting, June 19. The second reading vote would occur July 3. Geesaman estimated that the delay in passing the resolution could mean the rate hike gets pushed back to a Sept. 1 start date.

In other business, council:

•Approved the appointment of Joel Roberts to fill the vacancy left on Portland Redevelopment Commission with the departure of Tom Young.

•Heard a question from Rogers Durham about the planned Indiana Department of Transportation work to repave U.S. 27 from Portland to Bryant. Geesaman said the project is expected to start in mid-to-late-July.

•Heard from Geesaman that the Office of Community and Rural Affairs will be in Portland at the end of July to host a listening session.

•Discussed the recent start of work on the North Side Pedestrian Greenway Project, which will run along the west side of Creagor Avenue from Milton-Miller Park past Jay County Hospital to Haynes Park.