Water finances reviewed

Current water rates are not sufficient to maintain the current cash balance and complete planned capital projects.

The city, however, has reserves to help cover the costs.

Portland City Council heard a report regarding the city’s water fund from Ross Hagen of accounting and consulting firm Baker Tilly during its meeting Monday.

Council members also approved a take-home car policy for the police department and a recreational vehicle ordinance, both of which had been discussed at a work session last month (see related story).

Hagen noted that cash reserves have dipped to about $3.7 million, down from $4.05 million at the conclusion of 2023. (Cash reserves had been at $4.2 million at the end of 2016 before dipping to $3.48 million the next year because of water main work.) He said his firm recommends keeping a minimum cash balance of about $1 million.

The water department’s capital projects plan for 2025 includes two major projects — $800,000 in water main replacements and $180,000 to repaint the Tyson Road water tower. (Other years in the five-year plan show $100,000 for water main replacements annually.) In 2026, plans call for $130,000 for a new master control panel at the water plant.

“Rates are not really sufficient to fund all of your planned expenditures,” said Hagen, “but the city has put itself in an advantageous position with the water utility having that extra level of cash balances above those levels of recommended reserves.

“That gives you the ability to strategically make decisions around your rates and what you might want to do with those.”

Hagen indicated that in order to pay for those projects and maintain the city’s $3.8 million balance, it would need to raise water rates by about 40% — an increase of $7.84 from the current $19.60 for the average user. If the city were to use reserves to pay for the two largest projects in 2025, it could get by with an increase of 25% ($4.90) while still maintaining strong cash balances.

Water rates have not been increased in Portland since 2004. Hagen said they are currently well below the state average. 

Council members had no questions for Hagen regarding the report and took no action on water rates at the meeting.

Also Monday, council president Kent McClung expressed concern regarding the future of Jay County Development Corporation following a story Saturday in The Commercial Review that quoted an email from Jay County Commissioner Rex Journay laying out what he called “decisions” for the county considering its funding for the organization moving forward. Those include not renewing the contract of executive director Travis Richards, returning the budget to county control via the county auditor, reducing membership to 9 or 11 and hiring a qualified director.

Noting that the city is also a financial contributor to Jay County Development Corporation, McClung expressed his feeling that those demands could end the organization “as we know it.”

“I don’t want to see it go that way,” said McClung.

“My hope is that you guys can figure this out,” he added later. “But I don’t think it’s gonna happen.”

He said the city will need to look at how it wants to proceed with economic development if there are major changes to the way Jay County Development Corporation operates.

Golden expressed his agreement with McClung’s comments and encouraged the residents of Portland to vote Tuesday.

Council also heard an update from community coordinator Nate Kimball that applications for the county’s owner-occupied rehabilitation program — it will help residents pay for home improvements such as replacing a roof, water heater or heating, ventilation and air conditioning unit, doing electrical work or making a home more accessible — will be open from May 28 through June 28. It is being funded by a $1 million grant through the Indiana Office of Community and Rural Affairs (OCRA) in relation to the county’s participation in the Hoosier Enduring Legacy Program (HELP). Applications will be available in the auditor’s office at Jay County Courthouse, Kimball's office at the Community Resource Center in Portland, Redkey Town Hall and Dunkirk's city building. Applications will also be available to print at jaycounty.net. (All applications must be filled out and turned in on paper.)

Applications will be reviewed on a first-come, first-served basis via several steps, with OCRA making the decisions on what projects are funded. There is a limit of $25,000 per household.

Answering questions from the council, Kimball said he expects a timeline of at least three months from submitting applications to completion of work. He noted that the county will group projects together for bidding in order to make them more attractive to prospective contractors.

Hilfiker asked who would be handling home inspections as part of the process. Kimball said the county has not yet selected an inspector.

In other business:

•Council approved an ordinance on second reading to set the city council’s meeting time at 5:30 p.m. (Council has met at 5:30 p.m. since 2014 but had not changed the ordinance to reflect that reality.)

•Mayor Jeff Westlake reported the following:

    —A new drinking fountain has been installed at Hudson Family Park near the amphitheater. It includes a traditional drinking fountain, a water bottle filler and a drinking fountain for dogs.

 The new water fountain, which includes a fountain for dogs, has been installed near the entrance to the amphitheater at Hudson Family Park. The Goodrich Family donated the fountain in honor of John and Sarana Goodrich. (The Commercial Review/Ray Cooney)

 

    —The city’s wastewater department is working on mapping of the city’s sewer lines and manhole covers.

    —Police are working on code enforcement until the city can hire a code enforcement officer.

    —The fire department has gotten started with its first activity at its new training center.

•May asked about the status of Spruce Alley, which runs east-west connecting Meridian and Commerce streets just south of Bricker Auction Company. He said he’s had some complaints about the area and asked that the issue be put on the agenda for the May 20 council meeting.

•Council approved the following an additional appropriation for police equipment.

•May asked again about some blighted homes he had identified during a March council meeting. Westlake said he would look into the situation.

•Hilfiker thanked the street department for the installation of four-way stops at the intersections of North and Middle streets and Main and Ship streets.

•Goldsworthy expressed that he’s always available to talk to constituents about the issues affecting the city. “People have to remember, we’re never all going to agree,” he said. “We’re doing what we feel is best for the community.”