Rate hike is approved

REDKEY — Town residents will see an increase in their water bills beginning July 1.

Redkey Town Council on Thursday approved an ordinance to raise rates as the water fund has dipped into the red.

During a public hearing, Redkey clerk-treasurer Debbie James explained that the town’s water fund balance as of April 30 was minus $339.01. That’s down from $1,206.60 at the end of March.

The town’s current base rate for water usage, up to 2,000 gallons per month, of $17.37 has not been increased since 2009. Council president Terri Taylor explained that water rates should have been bumped up slightly each year in order to keep up with rising costs in addition to bond payments and maintenance for the water tower.

Keeping them flat for a decade has caused the town to spend down its water fund balance, which is now nonexistent.

Council member Doug Stanley proposed last month an increase of 25 percent this year, which would take the minimum water rate to $21.71. It would then increase 20 percent to $26.05 in 2020, 15 percent to $29.96 in 2021 and 10 percent to $32.92 in 2022. In the ensuing years, the rate would increase annually by 3 percent.

Council members Randy May, Taylor and Stanley unanimously approved the ordinance to put the increases in place, but only after some debate. (Council members Ted Friddle and Dave Dudelston were absent from the meeting.)

Taylor initially proposed tabling the ordinance until the full council was present. But that would have required another public hearing and thus pushed back the start date for the rate increase. Then, on a first vote, Stanley and Taylor were in favor with May voting against. (Because the two “yes” votes did not make up the majority of the five-member council, the vote did not pass.)

That sparked a response from Stanley, who oversees the water department.

“Then I want you to take the water department and I’ll take the police department,” he said to May. “You can explain when the faucets don’t turn on, when the toilets don’t flush, we’ll let you explain it to the public. How’s that?”

May then asked to change his vote.

“I don’t feel right doing it, but I’ll do it,” May said.

On a second vote, the ordinance was approved 3-0.

“Randy, it’s the responsible thing to do,” Stanley said. “We don’t have a choice; we’re going broke. (Do) you understand that?”

The water fund covers a variety of costs, such as repairing water main breaks, replacing water lines, testing, water tower maintenance and employee salaries. 

Taylor noted that the only money that comes into that fund is from water bill payments. 

In other business, council:

•Approved the following a sanction and insurance payment to Melissa Wasson, a member of the festival committee

•Approved a promissory note to pay back $27,375 to Redkey Economic Development Corporation over the course of five years. REDC provided the town with a loan to pay for the construction of a fence around the former dump site, as required by Indiana Department of Environmental Management.

The first yearly payment will take place June 1, 2020, and will be $5,475.

•Created a motor vehicle highway restricted fund in the town’s budget. The change is required by the state for tracking of new funding that government units are receiving for road repairs following the 2017 gas tax increase.

•Approved two water bill adjustments and denied one.

•Approved a new permit for the water plant at a cost of $1,500.