Rate Increase Explanation

Dear Utility Customer;

On October 26, 2022, the Churubusco Town Council introduced Ordinance 2022-18: An Ordinance to Amend and Replace the Sewer and Stormwater Rates and Charges for the Use of the Services Rendered by the Town of Churubusco and Ordinance 2022-19: An Ordinance to Amend and Replace the Water Rates and Charges for the Use of the Services Rendered by the Town of Churubusco. The rates introduced in Ordinance 2022-18 were based upon rate studies conducted in September 2020 and October 2022 by Baker Tilly in preparation of an $18.1 million sewer bond project that has been in development since 2019. While the 2020 rate study required an increase of 75%, the Town Council opted to instead increase rates by 50% in June 2021 with another study to be conducted once bids and financing were obtained with the hope rates would not have to increase to the full 75%. However, with bids coming in at 40% over the 2021 engineer’s estimate, the full 75% had to be taken. A public hearing was held prior to the ordinance’s passage on November 16, 2022 in which only two out-of-town residents spoke. Effective on the January 1, 2023 bill, minimum in-town sewer costs (use up to 3000 gallons) will be $70.87 and the minimum out of town cost will be $81.42.

The rates introduced in Ordinance 2022-19 were based upon a rate study conducted in September 2022 by Baker Tilly in preparation of a $4.5 million water bond project that has been in development since 2020. The study required a 27% increase prior to the Town being able to obtain temporary financing so we can begin a number of time-sensitive projects with the understanding another study will be conducted prior to obtaining permanent financing. It is the hope of the Town Council that with the upgrades and increased revenues received due to projects being done with temporary financing that another large increase will not have to occur prior to receiving permanent financing (small, 2% annual increases will still occur). A public hearing was held prior to the ordinance’s passage on November 16, 2022 in which no one spoke. Effective on the January 1, 2023 bill, minimum in town water costs (for use up to 3000 gallons) will be $47.91.

The total minimum bill for in-town residents will be $133.78 beginning on January 1, 2022 resulting in an average customer’s bill increasing by about $32.00. This includes four utilities- water, sewer, trash, and stormwater. Please remember utility rates are based solely on user charges. No tax dollars are used to fund utilities.

All complaints concerning utility rates and charges may be directed to the Churubusco Town Council. Their next meeting is January 18, 2023 at 6:00 p.m. in the Churubusco Park Scout

Building. THE CLERK’S OFFICE DOES NOT HAVE CONTROL OF RATES AND ALL COMPLAINTS WILL BE DIRECTED TO THE TOWN COUNCIL. The Council can also be contacted via email:

Devin Keener- dkeener@townofchurubusco.com
Mark Pepple- Mark@townofchurubusco.com
Nathan Van Horn- Nathan@townofchurubusco.com

Sincerely,

Madalyn Sade-Bartl- IAMC, CMO, MSM, MPA
Clerk-Treasurer/Council Chief of Staff, Town of Churubusco

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