18 percent sewer rate hike approved

The Huntingburg Common Council approved the proposed 18 percent sewer rate hike Tuesday evening.

The increase was recommended by Crohn and Associates to cover the operational costs of the wastewater department as well as fund a portion of the $4.3 million in needed upgrades to the aging infrastructure.

The council held a public hearing at Tuesday evening’s meeting to hear public concern over the rate increase. One citizen voiced concerns that the rate hike was caused by the Hunters Crossing subdivision development.

According to Mayor Denny Spinner, studies on the city’s wastewater needs began in 2012; before the subdivision project. Hunters Crossing and The Lofts of St. Joseph’s are two projects that will impact the demand on the system but according to the city, the upgrades have been needed for some time.

Additionally, a rate hike of 11 percent adopted in 2011 was less than the recommended amount needed to cover the department’s operating expenses and upgrades.

About 6.3 percent of the current increase is driven by projects the utility is undertaking to handle current loads as well as future growth. Those projects are estimated to be about $4.3 million. The council approved paying for the improvements using a combination of Tax Increment Finance funds ($1.5 million), a revenue bond ($1.4 million) and a loan from the electrical utility ($1.4 million).

The upgrades include the addition of a pressurized force main sewage system on the city’s northwest side; the installation of a lift station; and the addition of a gravity sewer system. As part of the projects, an 8-inch force main installed in 1974 will be upgraded to a 16-inch main.

The remaining 11.7 percent increase will cover the costs of the utility’s operation.

The rate increase will go into effect on January 1. The new rate will increase the average wastewater customer’s bill by about $8 — based on 4,000 gallons of monthly usage.