Look for city water rate increase on your February bill

New City of Greencastle water rates will go into effect Jan. 1 and be reflected in residents’ February billing after action by the City Council at its November meeting.

Meeting Thursday night at City Hall, the Council unanimously adopted Ordinance 2020-9 on second and final reading after a motion by Councilman Adam Cohen.

The ordinance -- which withstood a public hearing that drew two comments -- 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 see 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. So the total effect could be a 23 percent raise.

-- 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.

Wholesale users, meanwhile, 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.

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

There will be no increase this time in sewage rates, which are based on water usage, it should be noted.

During the public hearing, Wallace Hinkle, 926 N. Madison St., asked for clarification on how the new rate was calculated.

Clerk-Treasurer Lynda Dunbar told him the minimum bill is currently $9.97 per month, which after a 10 percent increase, will rise to $10.97 based on 100 cubic feet of water usage (or approximately 748 gallons).

Hinkle also asked about the trash collection fee, saying he had read that it will also be increasing. That, however, is not likely to happen for another year. The city’s current trash contract with Republic Services, which has been at a $10 monthly rate for 14 years, will expire next November.

“We’re hearing from other cities and vendors that we can expect that rate to go up,” Mayor Bill Dory said, noting that it could have an adverse effect on curbside recycling as well.

City Attorney Laurie Hardwick agreed.

“We’re locked into our current rate until November 2021. Fortunately we were locked in before the market changed.”

Changing markets have made recycling materials less than desirable. Mayor Dory said Greencastle is one of few locations where glass can still be recycled.

Tackling another question during the public hearing about the “economic drivers” in the increases, Dunbar said the city hasn’t raised water rates since 2014, and “like everything else, expenses are going up.”

She cited increases in infrastructure and labor costs as well as chemicals and implementation of a five-year capital projects plan.