New IDEM regulations require phosphorous removal from wastewater. Sludge holding tanks like this one at Milford’s wastewater plant are a big part of the process, which creates twice as much solid waste. Milford’s plant is undergoing upgrades in 2017 to comply with the regulations. (Photo by David Hazledine

MILFORD — Milford residents can expect a raise in their utility bills of at least $6 per month as early as March 2017, though no final decision has yet been reached by the town council. The increase comes at the recommendation of Umbaugh and Associates, hired last spring to explore options for financing upgrades to the town’s wastewater treatment plant required to meet new regulations set by the Indiana Department of Environmental Management.

Ross Hagen, representing Umbaugh, presented its recommendations to the Milford Town Council at its regular monthly meeting Monday evening, Dec. 12. The report outlined two options for securing and financing the bond issuance necessary to pay for the upgrades. Both options require a wastewater rate increase, primarily because the utilities’ operating expenses outstrip revenue by $22,000.

The first option would pay a level service payment during the life of outstanding bonds from 2004 and the proposed 2017 bonds and require $532,500 in revenue. The second option, preferred by the council, would “wrap around” payments. This is more expensive in the long run for the town but would require $501,700 annually, a lighter hit for taxpayers.

Under the first plan, monthly bills would go up 23.75 percent, or $8.80, while taxpayers would pay $6.08 at a 16.43 percent increase under the second plan.

The council must also decide whether to phase in the rate, with two increases during the course of 2017, or not. Council member Bob Cockburn questioned a phase-in, citing the inevitability of the increase. “Why fiddle around?” he queried.

Regardless of whether or not there is a phase-in, the council appeared to agree with member Doug Ruch’s assessment the wrap around option is “best for the end user” — taxpayers — and a rate increase was imperative. “There’s no other way to fund it and make it go forward,” he said of the wastewater plant upgrades, set to begin in March 2017.

Before the council votes on the ordinance implementing the increase, Jay Rigdon, council attorney, will research a question of Ruch’s as to the possibility of receiving financial assistance from the Milford Redevelopment Commission.

A representative of Wessler Engineering, overseeing the wastewater plant upgrades, was present and reported the project was “going well,” and added improvements to the sludge holding tank would equal the cost of hauling sludge in the winter. This will allow operator Mark Brubaker to store sludge for dewatering.

In other council meeting news, Building Inspector Ken Brower was again absent and, according to council members, unreachable. At November’s meeting, residents raised concerns about a Maple Street property owned by Ronald Davidhizar and uninhabited for more than 15 years. The matter requires action on Brower’s part. His absence led Council President Dan Cochran to recommend his dismissal, but the council did not vote on his dismissal.

It is expected Building Commissioner Tom Bulger will eventually take over in the position, however, Rigdon suggested he remain commissioner for now to enforce existing orders.

Action on the Maple Street property, which according to resident Jay Uribe has a rodent infestation and a large, dead tree, will have to wait until an inspector is appointed. Cochran assured Uribe the matter would be taken care of eventually. “We have to jump through these hoops … but we will win.”

In utilities reports, Steven Marquart was officially named water operator and street superintendent, a position he has filled since Randy Veach’s retirement last spring.

Marquart reported the new Waubee Lake playground equipment had arrived, though installation was stalled due to snow.

Beer and Slabaugh will begin work on the South Main Street water line after the holidays.

The council passed a motion allowing $681 in expenses for Marquart to attend a January meeting of the American Water Works Association in Indianapolis.

Another motion was passed to pump out seven lift stations at a rate not to exceed $170 per hour.

Two ordinances were also passed: 2016-9, implementing employees pay increase; 2016-8, receiving the Community Crossing Grant.