Corydon eyes sewage rate increase
The Corydon Town Council will hold a public hearing on new sewer rates at the council’s next meeting, Monday, Nov. 27, at 7:30 p.m. The decision came at Monday night’s meeting, after H.J. Umbaugh and Associates returned after several weeks of research.
The study proposes that Corydon Sewage Works raise sewer rates by 18.2 percent to make up for an annual loss of $175,600.
Current operations require an annual budget of $1.1 million, but current rates only generate $962,300.
This would mean, an average family ‘ defined by John Umbaugh as a married couple with two kids ‘ that used 5,000 gallons of water, would have a monthly bill of $22.10. Currently, it is $18.60.
Corydon’s rates are low, compared to rates from other towns in the area, such as Leavenworth, which would have a bill of $49.50. Many families, however, use less than 5,000 gallons.
The study also showed that there should be an increase in the capacity fee that is charged to new customers. The charge has been $350 for an average resident meter, and Umbaugh had recommended that it increase to more than $1,800. The council, however, decided to cap it at $1,500. Larger meters, mainly for businesses, have a higher charge.
The new rates will also increase the monthly base charge. Currently, the monthly base charge is $3.85 for an meter at a residence. The proposal has the monthly base charge at $4.60.
For the first time, the town could assess a fee for returned checks of $15 each and a lien assessment charge of $25, according to the proposal.
The proposal also suggested a sewer rate study every three years.
‘This needs to be done on a more regular basis,’ said Town Council President Fred Cammack. ‘The water rates need to be looked at, too.’
Since the town is losing money each month, the plan is to increase the rates as soon as it is practical. Even though the accountant from Umbaugh and Associates said the town, legally, could implement the rate increase, the board thought it would be better to wait.