Milford Considers Water Rate Hike
MILFORD — According to John Julien of Umbaugh and Associates, “Cash is king,” and cash is what the town of Milford is lacking when it comes to proper maintenance of its water utilities.
Julien and Ross Hagen, also from Umbaugh, were on hand at the Milford Town Council meeting Monday evening, July 13, to present the water rate study the town commissioned in the spring of 2015.
The study found if Milford is to maintain “good business practices,” said Julien, it should raise its rates, as much as a third of those of other towns in northern Indiana.
“The infrastructure is getting older,” said Julien, and the town does not have the money in its depreciation, or improvements, fund to cover unforeseen problems. Being cash poor means the town might have to borrow money in the future, which, in the end, is more expensive.
The study presented three scenarios for raising rates. In the third, ideal scenario, which would provide the town with $100,000 in its capital improvements fund and cover the $156,000 Umbaugh found was necessary to cover day to day expenses for a year, the average water bill would be $22.88 per month. This would still put Milford behind Goshen, $25; Syracuse, $29; Etna Green, $30.50; and Cromwell, where the average water bill is about $36.
“You’ve been prudent, but at risk of finding yourself in a situation of borrowing from other funds or outside sources,” Julien concluded.
During discussions, Doug Ruch suggested moving profits from the town’s cell tower from sewage to water to offset some of the proposed rate hike. But Dan Cochran and Council President Bob Cockburn disagreed, with Cochran characterizing the proposal as “robbing Peter to pay Paul.”
Cockburn wondered, “Are we looking at an old system that will cost more in the future?” He added, “If we don’t spend it now we’ll pay more later. Even the highest scenario looks good compared to our neighbors.”
Next month, Umbaugh will send updated report scenarios to the town and work out a three step phase-in. The council hopes to have a public hearing on the proposed hike in September.
At Monday night’s meeting the council also passed a motion to adopt ordinance 2015, which will “keep contaminants out of the water system,” said Town Attorney Jay Rigdon. According to Cockburn it also includes a “possible disconnect if the ordinance is disobeyed.”
In an update on the unsafe house situation, the council discussed with Rigdon how the town would recoup losses from the “worst case scenario” of a lien on a property and demolition. He informed the council it could be as little as six months to be clear of a property following the hearing process.
The council also decided to keep the 2008 Crown Victoria police squad car. According to reserve deputy Adam Amsden, “It does everything we need it to do.”
Next, the council passed a motion allowing the utilities department to spend up to $5,808 on sealing the town’s four properties.
The council also passed a motion to purchase a sewer tester for $4,392.
In other business, the council agreed to enter into a three-year agreement with Kosciusko County Ambulance Service LLC. The town will pay $35,000 per year for emergency medical services, a savings of $15,000 per year under its previous contract.