Fillmore council considers higher water rates following utility study

FILLMORE -- The Fillmore Town Council could soon find itself in the unenviable position of having to raise water rates.

Presenting the results of a rate study Thursday evening, Daniel DeVault of the Rural Community Assistance Program (RCAP) advised the board that while the town manages to get by, it is not meeting certain requirements for reserves as mandated by the state.

This includes the debt services reserve, which should remain at $1,650, or 10 percent of the annual bond payment of $16,500. The town needs also to fund the asset replacement reserve, which keeps money in place for replacing old or malfunctioning equipment.

DeVault estimated that the town requires $111,374 annually for the water system. The current revenue level is $96,500.

This shortfall of $14,874 led him to recommend a rate increase of 15.4 percent.

This would mean the minimum bill going from $23.92 per month to $27.61.

Unfortunately for the customers, though, this may not be the whole story.

Fillmore purchases its water from the City of Greencastle, which is currently going through a rate study of its own. With a rate increase likely in Greencastle, Fillmore would require an even higher increase on its customers.

If Greencastle, for example, passed a 30-percent rate increase, Fillmore would need to increase its rates by 22.5 percent ($29.30 minimum bill). A 40-percent increase from Greencastle would mean a 24.7-percent increase in Fillmore ($29.83 minimum bill).

With no word from Greencastle yet on its direction, the council is making no official decision at this time.

An important meeting for residents of both Greencastle and Fillmore will come at 6 p.m. Tuesday, Aug. 12, when the Greencastle City Council conducts a special meeting to review the city's recent rate study.

Even without a rate increase at this time, the town may soon be looking to replace some of its water equipment. Clerk-Treasurer Wanda Seidler reported that the town's meter reading equipment will no longer be serviced as of March 2015. While the equipment will still work, the manufacturer will no longer service or repair it.

An upgrade will cost the town between $5,000 and $8,000.

The town also received the annual statement of benefits regarding tax abatements at Liberty Industries. Economic Development Director Bill Dory reported that it is the last year for several parts of the abatement, but that several others will remain in place for a few more years.

Dory also said Liberty has increased its workforce to 22, which is an increase since the 2013 abatement review.

The council approved the renewal unanimously.

The Fillmore Town Council meets on the first Thursday of each month at 7 p.m.