Council gets first look at budget

Redkey Town Council members got their first look at next year’s budget.

At a special meeting Thursday, council learned that the proposed 2021 budget comes in at $573,243.

Council members also passed an ordinance to increase the town’s sewer rates by 20%, a move intended to allay the cost of continued sewer separation projects in Redkey.

The 2021 budget comes in 3.29% higher than the approved 2020 budget, which was $554,961.

Clerk-treasurer Debbie James told council the proposed budget includes 3% raises for all town employees and 4% increases for insurance costs. The proposed budget was presented for a first look before James consults with the Indiana Department of Local Government Finance. Council will then have until October to review and approve the budget.

“This is basically just so you guys can see what I’m going to propose to DLGF,” James said. “I just want to make sure you guys are OK with it.”

The only comment came from Erik Hammers, who requested that the 3% raise for council members be eliminated from the budget.

The proposed 2020 budget is divvied up as follows: general fund – $448,743; motor vehicle highway – $69,900; cumulative capital improvement (rate) –$14,500; park – $10,000; local option income tax – $10,000; economic development income tax – $10,000; cumulative capital improvement (cigarette tax) – $3,500; special education – $3,100; local road and street – $2,000; and rainy day fund – $1,500.

Also on Thursday, council held its public hearing for a 20% sewage rate increase; no one in attendance commented on the hike.

Council members Gary Gardner and Hammers voted to pass the ordinance, with Randy May dissenting. John Pierce and Terri Taylor were absent.

The sewer increase, which council approved on a 3-2 vote at its May meeting, came about because of the town’s continuing issues with its sewer systems. While a multi-year project to separate the town’s combined sewer overflows and to improve the sewage plant was completed late last year, untreated sewage is still overflowing into Redkey Run during periods of heavy rainfall.

The town recently entered into an agreement with the Indiana Department of Environmental Management to remove homes from combined sewer overflows and to identify additional line infiltration over the next few years.

If additional sewer rehabilitation work is needed, it will take place in 2024 or later.

These continued efforts, along with the potential for another extensive sewer project in a few years, prompted council to raise the sewer rate.

The new monthly minimum will be $63.44, up from the former minimum of $51.70 per month. It will go into effect on Sept. 1. The sewage rates are based upon the quantity of water used each month and the water meter sizes.

Residents will be charged $11.94 per 1,000 gallons of water for the first 2,000 gallons used each month. For the next 4,667 gallons, the charge will be $10.08 per 1,000 gallons; the next 10,000 gallons will be $8.22 every 1,000 gallons. The next 33,333 gallons will be $6.48 per 1,000 gallons, and the next 66,667 gallons will be charged at a rate of $6.06 per 1,000 gallons. Usage over 116,667 will be $3.72 per gallon.

Residents are also charged according to their water meter size. The minimum charge for 5/8 to 3/4-inch meters (the normal resident size) will be $23.88 per month. A 1-inch meter will be $30.61 per month, and a 1 1/2-inch meter is $48.73 per month. Meters that are 2-, 3- and 4-inches will incur charges of $91.69, $152.66 and $244.18 per month, respectively. A 6-inch meter would be charged $366.38 per month.

The third item on the agenda for Thursday was awarding a paving contract to Brooks Construction of Fort Wayne to repave three streets in the town. Brooks had the low bid for the work at $117,320, 75% of which will be paid for by the Indiana Department of Transportation Community Crossings grant program.