Increase of water rate is proposed

REDKEY — The town hasn’t raised water rates since 2009, but that could change soon.

Redkey Town Council member Doug Stanley during Thursday’s meeting proposed an increase in rates to help bolster the dwindling funds in the water operating account.

Stanley, the town council member who oversees the water department, proposed an increase of 25 percent in the first year, followed by increases of 20 percent in the second year, 15 percent in the third year and 10 percent in the fourth year. In the ensuing years, the rate would increase annually by 3 percent.

His proposal comes after town council members were asked at their March meeting to review the state of the town’s water fund. At that time, Stanley, who had already looked at the numbers, provided a frank analysis.

“We’re going broke,” he said.

The fund currently has a balance of $1,206.60.

“We are spending more money that we are taking in,” Stanley said this morning. “That’s been going on for a while.”

In addition to the dwindling funds for regular operation of the town’s water department, Stanley also noted that some large projects, including replacing water lines, are going to be necessary in the near future.

Council will hold a public hearing on the proposed increase during its regular meeting May 16.

Also Thursday, council approved a request from Mitch Hansel of Fleis and VandenBrink, the engineering firm overseeing the town’s sewer separation and wastewater treatment plan project, for $22,000. 

But the approval came only after council members questioned Hansel about the need for a change order after a payment of $67,984.33 was approved last month. The change order request was the result of a confusion about the funding required by the United States Department of Agriculture, which is providing loan and grant funds for the project.

“Does anybody in your office ever go through and double check the number?” asked Friddle. “I mean, you guys send it to us to approve, and we kind of rely on you guys to do that.”

Ultimately, town attorney Wes Schemenaur recommended that the $22,000 change order be approved rather than arguing with the USDA. Council members followed that recommendation.

The final stages of the project are expected to begin Monday, with a completion deadline of July 29.

In other business, council:

•Heard from council president Terri Taylor regarding new meeting policies. New policies will require members of the public who are interested in speaking during a meeting to ask in advance to be placed on the agenda. Those who are on the agenda will be limited to speaking for five minutes.

•Approved $51 from the town’s promotional fund to be put towards event insurance through the town’s policy in response to a request from Redkey Festival Committee.

•Set an executive session to discuss personnel policies for 5:30 p.m. May 16.

•Approved a contract with Chrysler Backhoe and General  for $4,956.52. The company will begin its contracted work for utility and maintenance in the town starting May 1. The town will be paying for the supplies independent of the contract.

•Discussed trying to find a new location for the Jay County Solid Waste Management District’s recycling trailer. It is currently located on the east side of Redkey Post Office.

•Heard from Stanley that the town is looking into grant options for projects at Redkey Morgan Park. Officials are also looking into the possibility of having the former fire station designated as a historic site.

•Approved six water bill adjustments.

•Heard a reminder from Taylor that residents are fined $150 when anyone who is unauthorized enters a pit to deal with water or sewage issues.

Residents are required to notify the town in such situations.

•Approved payment of claims totaling $72,602.62.