City water rate hike draws step nearer to implementation

An increase in City of Greencastle water rates is one step closer to reality after action by the City Council at its recent October meeting.

Meeting Thursday night at City Hall, the Council unanimously passed Ordinance 2020-9 on a motion by Councilman Dave Murray.

The ordinance -- which will still needs a public hearing and second reading at the November meeting before going into effect Jan.1 -- effectively endorses a Board of Works recommendation to raise water rates accordingly in three annual increments over three tiers of users:

-- Tier 1, which includes the first 2,000 cubic feet of water, will get a 10 percent increase beginning Jan. 1, going from the current $4.47 per 100 cubic foot to $4.92. In 2022 it will see another 5.09 percent increase and if the city fails to get a proposed $700,000 Indiana Office of Community and Rural Affairs (OCRA) grant by 2023, an additional 6.19 percent rate hike would be needed the third year.

-- Tier 2, the next 8,000 cubic feet of water, would see an increase from the current $2.81 to $3.23 in 2021 and $3.71 in 2020 via identical 14.9 percent rate boosts. If there’s no OCRA grant, Tier 2 would go up another 6.19 percent in 2023.

-- Tier 3, which covers 10,000 cubic feet of water will go from its present $2.26 to $2.61 on Jan. 1 and up to $3.01 for 2022. That represents identical 15.4 percent increases with another 6.19 percent due in 2023 if there is no OCRA grant.

Meanwhile, wholesale users will see increases of 10 percent, 8.27 percent and 6.19 percent over the three years of the rate hike. Those contract users will see the cost of water go from its current $2.53 per 100 cubic feet to $2.78 with the 10 percent hike in 2021 and $3.01 with the 8.27 percent bump in 2022. If a third increase is needed, the 6.19 percent hike will push the cost per 100 cubic feet to $3.20.

Sewage rates, which are based on water usage, are not increasing in this effort, it should be noted.

Although there was no discussion of the proposed water rates per se, Councilman Jake Widner asked, “What is in the plan for 2023 and thereafter?”

“We will probably have to start looking at rates again in 2022,” Mayor Bill Dory said.

Clerk-Treasurer Lynda Dunbar noted that the reason the city needs a rate increase is “this year we will probably have a loss.” That means revenues will not meet expenses for the Water Department.

“The only reason we’re making an increase is we’re not collecting enough money to meet our expenses with our current revenues,” the clerk-treasurer added.

It has been six years since the city’s last water rate increase.

The city could do an extensive rate review in the future, Dunbar said, but that carries a price tag of $50,000 or more.

In other business, the City Council:

-- Heard Department of Public Works Superintendent Brad Phillips announce that city leaf pickup will begin Oct. 26 and continue through Nov. 30. However, due to dry conditions it is possible that his department will begin leaf collection earlier if enough leaves fall that they can get a full load. Leaves are to be raked curbside but not into the street.

-- Heard Clerk-Treasurer Dunbar announce that Greencastle will have Clean City Day on Saturday, Oct. 24 from 9 a.m. to 1 p.m. in the parking lot at Greencastle High School. City residents will be receiving letters detailing what will be accepted. Some of those items, Dunbar said, include mattresses, furniture, large appliances, TVs (up to two), tires (up to four) and wet paint as the city will work with Jack’s Trash to dispose of those items.

-- Heard Mayor Dory note that DePauw’s work should be complete and South Jackson Street reopened either Friday or next Monday as paving was supposed to occur Monday. Noting that construction workers found a “few surprises” in the project putting a storm sewer beneath the road, the mayor said they discovered “what we think is a bridge from the old Interurban that used to run through town that was just buried and left under the surface of the land.”

-- Extended Old National Bank’s request for an ATM on South Indiana Street to Nov. 13 as that is when the bank’s new parking lot should be finished and a mobile banking center can open there.

-- Heard Mike Richmond of Main Street Greencastle report that the organization will conduct a trunk-or-treat event 4-6 p.m. Oct. 31 at Big Walnut Sports Park. Plans have been approved by the Board of Health, Richmond said.

-- Unanimously adopted Ordinance 2020-6 on second and final reading, setting tax rates and appropriations for 2021. The proposed tax rate of $1.8422 would raise $3,811,351 as the adopted tax levy portion of a total city budget of $8,868,074.

-- Unanimously adopted Ordinance 2020-7 on second and final reading, setting the size and salaries of city departments for 2021.

-- Unanimously adopted Ordinance 2020-8 on second and final reading, setting the salaries of elected officials for 2021. The ordinance sets the mayor’s annual salary at $70,400, the clerk-treasurer’s salary at $67,137 and the salaries of City Council members at $6,078 apiece.

-- Passed Ordinance 2020-10 on first reading. The ordinance repeals Ordinance 2020-1, which instituted a temporary moratorium on water shut-offs and late payment fines due to COVID-19.

-- Passed Ordinance 2020-11, terminating city first-responder benefits related to work during the COVID-19 situation. Termination of those benefits is effective Nov. 21.

-- Heard Clerk-Treasurer Dunbar report that the CARES Act will reimburse the city for $341,688 that will be used to cover hazard pay for police officers and firefighters during the COVID-19 pandemic.

-- Granted Chris Weeks’ request to close a portion of Franklin Street last Friday and Saturday for the Average House Band appearance.

Joining Mayor Dory, Clerk-Treasurer Dunbar, City Attorney Laurie Hardwick and Councilmen Murray and Widner were Council President Mark Hammer and Councilors Stacie Langdon, Cody Eckert, Adam Cohen and Veronica Pejril.

The next regularly scheduled City Council session is set for 7 p.m. Thursday, Nov. 12.