Jasper water rates to increase 17%
Jasper residents and businesses will likely see a 17 percent water rate increase on their August bills.
The Jasper Utility Service Board’s water committee decided that was the least increase the water utility would need to cover an increase in operating expenses.
Those increases were caused by several factors including the loss of the city’s largest water customer, the Jasper Power Plant, which when it was operating used up to 350,000 gallons a day. In addition to this loss, the city took on two mandated projects; the Beaver Lake Dam improvement project mandated by the Indiana Department of Natural Resources and the $1.45 million addition of ultraviolet cleaning equipment to the Jasper Water Plant mandated by the Environmental Protection Agency.
In addition to these unfunded projects, the city also completed the Third Avenue water main replacement project and plans on replacing water mains on U.S. 231 if or when the state decides to resurface it.
These projects together account for about 9.5 percent of the 17 percent increase.
A water rate study completed by Umbaugh and Associates actually recommended up to a 28 percent increase in water rates to cover the increases.
To lower that amount, the water committee is recommending that two loans — $1.45 million for the UV project and about $500,000 for the Beaver Lake Dam and Third Avenue water main projects — they are currently paying on be extended from 5-year payment schedules to 10-year payment schedules. The interest cost to extend those loans was unavailable at today’s meeting but according to Utilities Service Manager Bud Hauersperger, the interest rates on those loans are very low; he estimated around .5 percent.
In addition to extending those loans, the utility plans on splitting the estimated $350,000 cost of the project to raise the Beaver Lake water level between the Jasper Park and Recreation Department and the landowners around the lake if the city does move forward with the project.. The utility commitment would be about $175,000, according to Hauersperger.
The Umbaugh rate study compared water rates of 13 local water utilities and determined that the current rates in Jasper are among the lowest in the area at an average of $35.56 per month per residential usage. The increase will bring that average monthly bill up to $43.61.
According to Utility Service Board chair Rick Stradtner, “We are rate payers too. We don’t like this either but these mandates are out of our control.”
The last water rate increase was in 2010; the utility did not increase rates in 2012 despite a study indicating the need to do so.
The committee’s recommendation will be considered at the next Jasper Utility Service Board meeting scheduled for April 20 at 7 p.m. in the Common Council Chambers at City Hall. If approved by the USB, the Jasper Common Council will have to approved the rate increase also.
The committee also discussed the results of a wage determination hearing held in March. The Jasper Storm Water Board convened a wage determination hearing in January that decided to use non-union rates on a the storm sewer replacement project on Worrell Drive between 13th and 15th streets. That story can be read here.
The Southwest Indiana Building and Construction Trades Council and Jasper residents Matt Leinenbach and Mark Clery filed an injunction on January 23 based on the decision made at the January 7th wage determination hearing. To appease the trades council, a second wage determination hearing was held in March and the committee again decided to use the non-union rates presented.
The city had thought with the new hearing, the trades council would drop the injunction but they have not done so. According to City Attorney Renee Kabrick, a pre-trial meeting is scheduled between council for the plaintiffs and the city. She expects to have more information available after that meeting.
This, in addition to the State Senate considering a repeal of the wage determination law, have the storm water and Beaver Lake Dam projects on hold for now.
