Joe Hornaday
An increase in water and sewer rates for Greensburg residents, which had been approved by the Board of Works and Water Board in a joint meeting last month, submerged the City Council this week.
Previously, the hike in water and sewer rates in the amount of five percent compounded over each of the next three years had been given the green light and was taken to the City Council on Monday for approval that would require three readings and a public hearing.
The City Council approved the rate increase in its first reading by a vote of four to one, with City Councilor Bill Wenning dissenting.
Gary Malone of H.G. Umbaugh explained that the erosion of revenue for the sewer and water departments had helped lead to the necessary increase in rate. The revenues, he said, were not keeping pace with the expenses and that problem is the trend where revenues decline, in many ways a result of the recession. It had put pressure on the utilities to remain viable, and if nothing was done, it could lead to a shortfall in revenues, according to Malone.
The five percent water and sewer increase compounded over the next three years came with the provision that the City Council will get to revisit the issue every year to choose a new course of action, including possibly lowering or eliminating that year’s increase, if they choose.
Mayor Gary Herbert explained that the city has been selling less water, which has generated less revenue and made the problem worse. According to Malone, those in the bottom rate block for sewer and water would see their bills increase quicker. It is best to increase the rates a little bit at a time, he added.
City Councilors Herb Hunter, Jaime Cain and Bill Wenning had trouble understanding the need for an increase. Hunter asked Malone if a business like KB Foods went out of business and thus stopped using water and sewer, would there be a need for a 10 percent increase for residents. Councilor Wenning wondered why the rates were being affected and not the utilities. He inquired if there were ways to cut costs elsewhere in the departments before going to a rate hike. Malone reported that the utilities have been mindful of their expenses, and water superintendent Rick Denney and wastewater superintendent Jeff Smith told the Council that their departments have been running with as little expenses as possible.
When residents pay their water and sewer bills, some of the money goes aside to pay for things like new water lines or upgrades to existing equipment, Mayor Herbert noted. Without an increase, those projects would have to wait.
Councilor Wenning said it would probably be a tough pill to swallow for Greensburg residents who would have to pay for the water and sewer not being used by business and industry on the decline.
When asked about Honda Manufacturing of Indiana and its impact on the water and sewer rates, Malone said that Honda has been helpful in paying a guaranteed minimum payment, and having paid about $200,000 more than the actual amount of water and sewer services used during their first year in Greensburg.
“If Honda hadn’t been here, we would have been in trouble,” Councilor Darrell Poling noted.
The Council continued to look at ways to tighten the budgets at the utility departments, but Mayor Herbert said ignoring the problem would result in the city being unable to maintain the utilities. Councilor Jaime Cain expressed concerns regarding raising rates at such a terrible time in the economy.
Malone explained that no rate increase would result in the sewer department being about $132,000 short for the year, and about $150,000 short the year after. Utilities office manager Donna Lecher interjected that the city cannot execute capital projects, including replacing old lines and old meters, without more money.
Councilor Wenning continued to worry about the impact on people paying bills now as well as the future impact on businesses willing to locate in Greensburg.
“We’re in the worst financial straits as a country, as a city,” Wenning said. “I just hate doing it in a year when people are pinching their pennies.”
Wenning suggested waiting six months to a year before looking at raising rates, but Mayor Herbert said that waiting could result in the need for more of an increase later. City Councilor Helen Gardner added that in order to maintain the services the city offers now, the rates had to be increased. Comparatively, the city of Greensburg pays lower rates than nearby cities, she said. Gardner noted she did not want to pay more either.
“But I don’t see any way around it,” Gardner said.
Councilor Wenning said he still had “a bad taste in his mouth” about raising the rates. Councilor Cain ultimately agreed to the increase, but expressed his desire to increase them one year without agreeing to do the following two years. Mayor Herbert noted that the passage of the ordinance was only in the first reading and could be changed in subsequent readings. The ordinance passed four to one.
City planning and zoning director Kathy Reynolds brought to the Council an issue of the Traffic Control Committee, and a request for a one-way street designation on Monfort Street from N. Michigan Avenue to W. First Street. The Traffic Committee had suggested making it from Michigan Avenue to Walnut Street. However, before a decision is made, Reynolds said she would like to hear from the people in the neighborhood regarding what they think should be done.
Moving forward, the City Council approved an SB-1 Form Request from GECOM to bring new equipment to the Greensburg plant and subsequently bring on about 27 more employees. The Council also unanimously appointed Janet Alloy to a seat on the Board of Zoning Appeals, replacing the departing Jean Johannigman, who had served in the position for 14 years. Johannigman thanked the Council for her time serving on the BZA.
Before adjourning, the City Council heard the yearly requests for funding, though the group decided to wait to make decisions next month. Interested parties included MainStreet Greensburg, the Greensburg Learning Center, New Directions of Decatur County and Greensburg Community Schools for further funding of the school system’s resource officer.
The next scheduled meeting of the City Council is set for 7 p.m. on Monday, March 1 at City Hall.
