Warsaw Council Passes Utility Rate Ordinance
WARSAW — Arguments surrounding the city’s new utility rate again dominated the Warsaw Common Council discussion at the Nov. 6 meeting, as council members struggled to come to an agreement. There was pressure to make a decision: in order to save the city $1 million, a rate ordinance has to be set in place by Nov. 20.
To kick off the conversation council president Mike Klondaris asked Jeff Rowe with Umbaugh and Associates how much revenue will be lost annually if not every dwelling paid the $3.79 base billing fee, as would be the case in many multi-unit dwellings who would pay a base fee per billed meter rather than per dwelling. Rowe calculated the cost at just over $111,000. Any lost revenue will potentially need to be recouped in phase two next year.
Arguments with the new utility rates have focused on multi-unit dwellings. Local landlords have frequented recent meetings, concerned with the changes they will be seeing.
“The landlords have cried foul because they have set their rent and now will cut into their profits,” said councilman Jerry Frush. “This is known as the cost of doing business.” Frush added, “Our job as city council members is to make good choices for the city and all of its citizens, not just special interest groups.”
Councilman Ron Shoemaker took issue with a different matter, concerned with the cost non-metered residents will be paying for their services. Section 78-158 of the ordinance states that a non-metered service shall be no less than $39.12 per month, equating to 4800 gallons of used water with a 5/8″-3/4″ meter. Shoemaker’s issue is that the average residential use is only 4200 gallons, and he states that American Water advised him the trend is headed down.
“I think as the city moves forward with this transition of billing based on flat rate to metered rate, and I think there’s been some discussion that there will have to be some further analysis done to look at usage patterns … Those types of adjustments will need to be considered,” said Rowe.
Diane Quance reminded people that no matter what, prices will be raised to pay for the city’s pipes to be fixed. Having an ordinance by Nov. 20 helps save the city money. Rates can be adjusted as analysis is done over the next year.
Klondaris chimed in, “The pipes have to be fixed. Part of that cost is paid for with this billing charge …if some people don’t pay the billing charge, they don’t have skin in the game to help pay for these pipes to be fixed when they’re using the pipes. Everybody wants their dirty water … to leave their drain, and it has to get out to the plant … that $3.79 is part of the cost of doing that.”
Klondaris later stated, “By passing this I think you just threw out the ‘equitable’ part in ‘just and equitable’ because some are going to pay and others are not going to pay,” proceeding to state that the arguments are over a mere $2 a month increase from $10 to $12. “I just don’t see how we’ve come to this point,” he said, adding: “I want everybody to pay their fair share.”
The revised ordinance ultimately passed with only Klondaris and Frush opposing. A public hearing will take place Nov. 20.
In other business:
- Line 2 reductions from the 2017 budget were approved.
- The first reading of the amended sewage works bond ordinance was approved. The second reading will be Nov. 20.
- Steve Foster was present to ask for two stop signs on Anchorage Point Drive. It was approved with the rules being amended and the second reading also being approved.