North Judson Town Council Approves Water Rate Adjustment

Posted on November 20, 2018
Author Jacque Ryan, WKVI

Residents in the Town of North Judson will see an increase on their next water bill. When the Town Council met Monday evening, Umbaugh representative Ross Hagan provided members and meeting attendees with the finalized figures for a water rate adjustment.

He stated that an 18.3 percent increase is required to help cover the cost of a required waterworks project. Hagan noted, “Currently your residents are paying for $26.05 for a 4,000-gallon bill, that’s going to be $30.70 now on an average monthly bill.”

Some of the major elements of the project, such as the rehabilitation of the water towers and the installation of a backup generator at the water plant, will bring the town into compliance with mandated standards from the Occupational Safety and Health Administration (OSHA) and the Indiana Department of Environmental Management (IDEM). In other words, these are not cosmetic fixes but necessary upgrades that are required by the state.

When this rate adjustment was introduced to the council last month, they were told it would be about a 15 percent increase based on engineer’s estimates. However, after the only viable project bid came in about $250,000 over budget, it required the adjustment to be increased to cover the additional commitment. Town Superintendent Marshall Horstmann noted that two other bids came in but since they were received after the deadline they could not be opened.

While discussing the matter, Council members noted that they’d like to speak with Vince Sommers from Common Wealth Engineers to discuss the bidding process and the large difference between the engineer’s estimate and the actual price of the contractor’s bid.

Councilwoman Jane-Ellen Felchuck asked if the project could be re-bid to see if any other contractors could provide a lower cost. She was informed that in order to stick to the schedule that will allow the Town to secure the required SRF Loan needed to fund this project, they would not have enough time to start the bidding process over again.

Hagan added that if they were to scrap this path and try re-bid the project on their own, they’d face even higher interest rates in the open market and would run the risk of not being eligible for loans from the State Revolving Fund down the line.

When asked if another rate increase will be required in the near future Hagan noted that, barring any major unforeseen expenditures popping up, this increase should suffice since it takes into account long-term maintenance and operation costs related to the project.

While council members were anticipating a lower rate adjustment, they recognized that they’ve already committed to the SRF Loan and realized the necessity of the increase as demonstrated in the rate study conducted by Umbaugh.

Much to their chagrin, members approved the ordinance amending the waterworks schedule of rates and charges. The ordinance went into effect immediately after adoption, meaning the new rate will be reflected on the next water bills.