Warsaw Council Sees First Look At Cost Of Service Study, Sewage Rate Increase
WARSAW — The Warsaw Common Council got the first look at the cost of service study, which included the projected sewage rate increase, during the meeting held last night, Sept. 17.
Warsaw Mayor Joseph Thallemer explained that the city received the draft of the cost of service study last week. The study examines the actual cost to provide service and projects rates to support debt service for collection service upgrades and the plant compacity increase. The study comes before the bond issuance for the $30.5 million project to expand the sewer plant.
Jeffrey Rowe, of Umbaugh & Associates, was present to introduce the study. The city last conducted a cost of service study in 2008. This study was used to identify service characteristics of the customers to distribute costs in proportion to their service demands. Rowe described the study as “critical” to establishing equitable rates and changes.
The city thought the study was necessary due to significant changes in the wastewater system since 2005. Since that time the department has consolidated wastewater treatment plants and seen customer growth. In 2017, $10 million was invested into the collection system project. The department changed from the previous flat rate billing to metered rates and eliminated the administrative charge.
Rowe explained that they came up with the volume rate charge by dividing the treatment costs by the billed flow. The base charge was determined by dividing the collection system costs by equivalent bills.
Based on this formula, the average residential home can expect to pay around $40.40 a month based on 4,000 gallon usage. This includes the $18.40 monthly base charge and a $5.50 flow charge per 1,000 gallons.
At the current rate, a residential home pays $30.81. The average home will see a 24 percent increase on their bills. Since the new billing system is based on metered rates, this exact percentage will vary depending on the household.
Based on the current rate study, Winona Lake customers would see around an 8 percent increase and Leesburg customers would see around a 7 percent increase.
Rowe concluded that as a representative of Umbaugh, he recommended the city move forward with the cost of service approach. It was noted several times throughout the meeting that this is still a draft. These rates are subject to change.
The following is the tentative schedule moving forward with the rate increase:
- Oct. 11 – receive construction bids.
- Oct. 15 – first reading of the bond ordinance at Warsaw Common Council.
- Oct. 19 – consider the award of construction bid at Warsaw Board of Works meeting.
- Nov. 5 – adopting the bond ordinance and conduct the first reading of rate ordinance at Warsaw Common Council.
- Nov. 19 – conduct rate hearing and adopt rate ordinance at Warsaw Common Council.
- Dec. 13 – bond closing.
- Dec. 17 – notice to proceed given to contractors.
In other business:
- The council approved the second reading of the Williams annexation ordinance. This land will be zoned residential and will be located within council district 5.
- The council approved a resolution approving the lease between the Warsaw Redevelopment Authority and the Warsaw Redevelopment Commission. Read more about this resolution, here.
- The council approved the accompanying resolution to expand the Northern TIF district to include the airport annexation area and consolidate the Eastern and Northern TIF districts.
- A public hearing was held for the J. J. Thallemer annexation. Mayor Thallemer recused himself from the discussion as this is the land that contains his private business. No public comment was made. The council went on to approve the annexation fiscal plan resolution.
- Thallemer introduced a request for support concerning the Council Against Bigger Trucks. Thallemer stated he would consult members of the US 30 Coalition and report back at the next meeting.
- The salary ordinance was presented to council members. This won’t be approved until Nov. 1. Council members were given the ordinance to review and ask any questions.
- The next meeting will be held at 6 p.m. Monday, Oct. 1.