NEW PALESTINE — A larger-than-normal crowd attended the most recent New Palestine Town Council meeting after an increase in sewer rates was posted as the main topic on the agenda. Following a release of potential rates, at least one town resident let the council know he was not pleased with their administrative process.
The town is in the midst of an estimated $21.4 million waste water plant renovation project. The two-phase project is needed due to growth in the town. County officials will raise rates as soon as November.
The preliminary plan is to go from the current $72 rate, which includes a $5 storm water fee, to an estimated $88 rate plus $5 for storm water during phase one of the project. Officials say rates are projected to go higher in 2026 to pay for the renovation project and they are only doing the project because they must.
Jarod Hall of Krohn & Associates gave a presentation of a sewer rate study and presented various rate numbers that could change after bids for the project come back.
Based on the study, the council was presented with several different options on the rates, with all showing an increase. The proposed max rates through the life of the project showed the project could cost citizens as much as $119 in a monthly rate. The presentation showed varied rates depending on which project pay plan the town selected a 20 year level, a 20 year wrap or a 25 year wrap.
The council preliminary selected the 20-year level plan for the project with proposed sewer costs per month at the max for citizens estimated at $119 per month, plus a $5 storm water fee for a total of $124 per month, but not until 2026. Customers would instead pay the $88 rate starting in November.
Hall noted the project costs an estimated $18.3 million and the town should get the bids at the end of October. Legal and administrative costs brings the total project to $21.4 million. After revenue adjustments, there is a $19.9 million gap which must be funded by taxpayers for the project.
“What we’re proposing is a two-phase implementation with phase 1 being you have to adopt rates based on your customer base today,” Hall said.
Council vice president Bill Niemier said after doing the math, the 20-year level plan made the most sense due to the interest rate costs on a 25-year wrap, which might lower monthly rates to $107 at their max, but would cost tax payers more money in the long haul.
“Citizens would be paying an extra $4.2 million to reduce a monthly rate by $12,”Niemier said. “To me, as ugly as it is, that 20-year level you save in the long run by not paying all that interest.”
Council president Teri Reed said she preferred the lowest possible sewer fees for residents due to rates more than likely being raised in the future.
“The reason we’re sitting here tonight is because, had the town raised the rates at $4 a year since 2009, we’d already be at a $100 rate and we wouldn’t be having this discussion,” Reed said.
Council member Ryan Hartley noted people are struggling paying bills now, and he wanted to also go with a lower monthly rate.
“I know $9 might not sound like much, but for the single parent with a child or a single elderly person this is going to be a lot harder,” Hartley said. “It’s just a lot of money.”
Council secretary Chad Molinder said the decision fell in the current council’s laps and despite how difficult a decision it is, they are elected to make it.
“It’s been weighing on the group as we look at these numbers,” Molinder said. “We’ve got to make a tough decision.”
The council voted unanimously to move ahead with a 20-year level project plan, costing customers at max $119 per month coupled with storm water fees of $5 creating a resident bill estimated at $124 per month by 2026. However, Molinder reminded those in attendance the rates will only go up to $88 starting in November, plus $5 for storm water.
New Palestine resident Chris Wernimont said he was outraged by how the council handled the whole sewer project and rate increase.
“You guys made this decision without a public hearing,” Wernimont said after the proposed 20-year level plan rate was selected. “I don’t have as much as an issue with the results as I do the process here.”
Wernimont noted town officials did the same thing in 2016 and are dealing with the negative results now.
“You guys just built the most aggressive plan that’s in here,” Wernimont said before storming out of the meeting. “No decision, no even thinking about things. What if the economy falls on its face?”
The council started discussing the need to expand the town’s waste water plant in 2021 after officials identified the plant was not operating efficiently and was actually over capacity requiring the improvements, Al Stong of Commonwealth Engineering said.
The town’s attorney noted the rate increases will be discussed again before the project is officially adopted over the next several meetings.
Officials warn project costs and interest rates can change as they receive construction bids and the final interest rates indicating the final cost per month could also change.
