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
WHEREAS, the Town of Churubusco, Indiana (the “Town”), has heretofore constructed and has in operation sewage works pursuant to IC 36-9-23 et seq. (“Sewage Works”) for the purpose of collecting and disposing in a sanitary manner of sewage of the residents and other non-resident users of the Sewage Works of the Town; and
WHEREAS, Indiana Code 36-9-23 provides that a municipal legislative body shall, by ordinance, establish just and equitable fees for the services rendered by the Sewage Works;
WHEREAS, the Town Council of the Town (“Council”) has previously by ordinance 2021-04 established the existing schedule of user rates and charges for sewer and storm-water services; and
WHEREAS, the Town has employed Baker Tilly Municipal Advisors, LLC (the “Financial Advisor”) to prepare a rate report reviewing the sufficiency of such existing rates and charges; and
WHEREAS, the Financial Advisor has prepared and submitted a rate report dated October 18, 2022 (the “Rate Report”) which concludes that existing rates and charges are insufficient to pay all the legal and other necessary expenses incident to the operation of the utility, including maintenance costs, expansion, operating charges, upkeep, repairs, depreciation, including increases in such costs, and interest charges on bonds or other obligations; and
WHEREAS, pursuant to Ind. Code 36-9-23-26, this Council may change or adjust its existing schedule of fees by ordinance after providing notice and conducting a public hearing; and
WHEREAS, Ind. Code 36-9-23-25, authorizes this Council to adopt by ordinance a just and equitable schedule of fees for sewer and storm-water services rendered by the Town’s sewer utility; and
WHEREAS, Ind. Code 36-9-23-25 authorizes this Council to exercise reasonable discretion in adopting different schedules of fees, or making classifications in schedules of fees, based upon variations in the costs, including capital expenditures, of furnishing services to various classes of users or to various locations, or the number of users in various locations; and
WHEREAS, because of and based upon such cost increases as provided in the Rate Report, it is nondiscriminatory, reasonable, and just to amend the existing schedules of fees herein for users of the Sewage Works; and
WHEREAS, the Clerk-Treasurer of the Town has given notice of the public hearing on proposed rates pursuant to the Indiana law; and
WHEREAS, a public hearing was held before this Council on November 16, 2022 at which time testimony from interested persons was received, after introduction of this Ordinance (“Ordinance”) and pursuant to the Indiana law.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF CHURUBUSCO, INDIANA:
SECTION I: COLLECTION, FEES, AND PAYMENTS
A. The Council hereby finds and determines that, based upon the Rate Report, the existing rates and charges are insufficient to pay all the legal and other necessary expenses incident to the operation of the utility, including maintenance costs, expansion operating charges, upkeep, repairs, depreciation, including increases in such costs, and interest charges on bonds or other obligations.
B. The Council finds and determines that the proposed rates and charges as set forth in the Rate Report are nondiscriminatory, reasonable and just, and therefore should be adopted.
C. After the effective date of this Ordinance, there shall be imposed the following rates and charges:
METERED RATES PER MONTH- RETAIL CUSTOMERS BEGINNING JANUARY 1, 2023 ARE DETERMINED BASED UPON THE FOLLOWING CALCULATIONS
Present Charge
Within Town Limits (per thousand gallons) Present Charge
Outside Town Limits* (per thousand gallons) Within Town Limits (per thousand gallons) Proposed Charge, metered Outside Town Limits* (per thousand gallons)
Effective Billing Date 6/1/2021 6/1/2021 1/1/2023 1/1/2023
Operation & Maintenance, Local Capital Charge, and Long-term depreciation $15.41 $17.71 $21.96 $25.23
MINIMUM CHARGE PER MONTH- RETAIL CUSTOMERS BEGINNING JANUARY 1, 2023
Minimum Charge per Month: Each user shall pay a minimum charge in accordance with the following applicable size of meter installed, for which the quantity of water use is set out below plus the Billing Rate which is not included in the following calculation
Meter Size Gallons Allowed Present Charge
Within Town Limits
Present Charge
Outside Town Limits
Within Town Limits Outside Town Limits*
Effective Billing Date 6/1/2021 6/1/2021 1/1/2023 1/1/2023
5/8 or ¾ inch Up to 3,000 $46.23 $53.12 $65.88 $75.70
1 inch Up to 5,000 $77.05 $88.53 $109.80 $126.16
1 ½ inch Up to 10,000 $154.10 $177.06 $219.59 $252.31
2 inch Up to 16,000 $246.56 $283.30 $351.35 $403.70
3 inch Up to 30,000 $462.30 $531.18 $658.78 $756.94
4 inch Up to 50,000 $770.50 $885.30 $1,097.96 $1,261.56
6 inch Up to 100,000 $1,541.00 $1,770.61 $2,195.93 $2,523.12
Unmetered within corporate limits $70.61 $100.62
Unmetered outside corporate limits $81.13 $115.61
* Outside Town limits rates and charges are approximately 14.9% higher than the rates and charges for customers within Town limits.
METERED RATES PER MONTH- RETAIL CUSTOMERS BEGINNING JANUARY 1, 2024 ARE DETERMINED BASED UPON THE FOLLOWING CALCULATIONS
Within Town Limits (per thousand gallons) Proposed Charge, metered Outside* Town Limits (per thousand gallons)
Effective Billing Date 1/1/2024 1/1/2024
Operation & Maintenance, Local Capital Charge, and Long-term depreciation $22.40 $25.73
MINIMUM CHARGE PER MONTH- RETAIL CUSTOMERS BEGINNING JANUARY 1, 2024
Minimum Charge per Month: Each user shall pay a minimum charge in accordance with the following applicable size of meter installed, for which the quantity of water use is set out below plus the Billing Rate which is not included in the following calculation
Meter Size Gallons Allowed Within Town Limits Outside Town Limits*
Effective Billing Date 1/1/2024 1/1/2024
5/8 or ¾ inch Up to 3,000 $67.20 $77.21
1 inch Up to 5,000 $112.00 $128.68
1 ½ inch Up to 10,000 $223.98 $257.36
2 inch Up to 16,000 $358.38 $411.77
3 inch Up to 30,000 $671.96 $772.08
4 inch Up to 50,000 $1,119.92 $1,286.79
6 inch Up to 100,000 $2,239.85 $2,573.58
Unmetered within corporate limits $102.63
Unmetered outside corporate limits $117.92
* Outside Town limits rates and charges are approximately 14.9% higher than the rates and charges for customers within Town limits.
METERED RATES PER MONTH- RETAIL CUSTOMERS BEGINNING JANUARY 1, 2025 ARE DETERMINED BASED UPON THE FOLLOWING CALCULATIONS
Within Town Limits (per thousand gallons) Proposed Charge, metered Outside* Town Limits (per thousand gallons)
Effective Billing Date 1/1/2025 1/1/2025
Operation & Maintenance, Local Capital Charge, and Long-term depreciation $22.85 $26.24
MINIMUM CHARGE PER MONTH- RETAIL CUSTOMERS BEGINNING JANUARY 1, 2025
Minimum Charge per Month: Each user shall pay a minimum charge in accordance with the following applicable size of meter installed, for which the quantity of water use is set out below plus the Billing Rate which is not included in the following calculation
Meter Size Gallons Allowed Within Town Limits Outside Town Limits*
Effective Billing Date 1/1/2025 1/1/2025
5/8 or ¾ inch Up to 3,000 $68.54 $78.75
1 inch Up to 5,000 $114.24 $131.25
1 ½ inch Up to 10,000 $228.46 $262.51
2 inch Up to 16,000 $365.55 $420.01
3 inch Up to 30,000 $685.40 $787.52
4 inch Up to 50,000 $1,142.32 $1,312.53
6 inch Up to 100,000 $2,284.65 $2,625.05
Unmetered within corporate limits $104.68
Unmetered outside corporate limits $120.28
* Outside Town limits rates and charges are approximately 14.9% higher than the rates and charges for customers within Town limits.
STORM-WATER RATES
A flat Storm-water rate is hereby established and assessed to all retail customers residing within corporate limits of the Town. Monies from this rate will be deposited into a separate Storm-water Fund and will be used only for purposes pertaining to Storm-water activities.
Flat Rate Per Month (Effective January 1, 2020) $5.00
1. The rates set within the above are based on a single meter and service a customer regardless of use. Provided however, for any multi-family dwelling unit where each unit is not individually metered, said customer shall be charged the minimum charge for a 5/8 or ¾ inch meter plus the Billing Rate per unit.
2. Subject to Section I.C.1., the minimum charge for sewage services where the user is a metered water consumer shall be based upon the size of the water connection and the location of the user as set forth above. All metered customers will be billed at a minimum of 3000 gallons of use.
3. Charges for sewer and storm-water will be billed regardless of if water meter is disconnected or turned off as the structure is still connected to the sewer system and served by the system.
4. Summer Sprinkling Credit is applicable to single-family domestic and residential users of sewer service. Water usage for bills generated in June, July, August, and September (collectively the “Summer Months”) shall be compared to the previous usage billed in November, December, January, and February (collectively the “Winter Months”) and the sewage billing shall be based on the lesser flow of the Summer Months vs. the Winter Months. The Town reserves the right to extend the term of the foregoing credit, but shall not lessen the term.
5. Any and all owners of real estate, whether and individual or an entity and their or its survivors, heirs or assigns, outside the Town limits, who shall connect the to Sewage Works system, shall agree in writing prior to the connection to waive their rights to remonstrate against annexation by the Town. This includes any connections that may be serviced by wholesale customers.
WHOLESALE TREATMENT RATE
The water usage schedule, on which the amount of the sewage rates and charges shall be determined, shall be as follows:
Current Rate
(per 1000 gallons) Proposed Rate
(per 1000 gallons)
January 1, 2023 Proposed Rate
(per 1000 gallons)
January 1, 2024 Proposed Rate
(per 1000 gallons)
January 1, 2025
Effective Billing Date 9/1/2019 1/1/2023 1/1/2024 1/1/2025
Wholesale Rate $5.58 $10.16 $10.36 $10.57
“BILLING RATE” EFFECTIVE JANUARY 1, 2023
All monthly statements shall be assessed a monthly billing charge in addition to use charges.
Current Rate Within Town Limits Current Rate Outside Town Limits* Billing Rate
Within Town Limits Billing Rate Outside Town Limits*
Effective Billing Date 6/1/2021 6/1/2021 1/1/2023 1/1/2023
Billing Charge (per month) $3.50 $4.02 $4.99 $5.73
“BILLING RATE” EFFECTIVE JANUARY 1, 2024
All monthly statements shall be assessed a monthly billing charge in addition to use charges.
Billing Rate
Within Town Limits Billing Rate Outside Town Limits*
Effective Billing Date 1/1/2024 1/1/2024
Billing Charge (per month) $5.09 $5.84
“BILLING RATE” EFFECTIVE JANUARY 1, 2025
All monthly statements shall be assessed a monthly billing charge in addition to use charges.
Billing Rate
Within Town Limits Billing Rate Outside Town Limits*
Effective Billing Date 1/1/2025 1/1/2025
Billing Charge (per month) $5.19 $5.96
* Outside Town limits rates and charges are approximately 14.9% higher than the rates and charges for customers within Town limits.
D. LIABILITY FOR PAYMENT
The user charges imposed under this section shall be billed to the person who is billed for water and sewer service. The account owner shall have the right to examine the Town’s collection records to ascertain whether such charges have been paid.
E. DELINQUENT ACCOUNTS AND DISCONNECTION:
1. Fees levied pursuant to this section shall be due and payable on or before the due dates shown on the utility bill. Any fee not paid by the due date (approximately twenty (20) days after the bill is rendered) shall be considered delinquent.
2. A delinquent fee, together with any applicable interest, shall be collectable as set forth in this section. Any delinquent or unpaid rates and charges may be assessed a 10% penalty and collected according to the pertinent provisions of the Statutes of Indiana, as amended.
3. Users are subject to disconnection after accounts are forty-five (45) days in arrears.
4. Disconnection notices shall be mailed to the user and owner on record at least seven (7) days prior to disconnection.
5. Any person who is delinquent on their combined utility bill and is subject to disconnection for nonpayment thereof must be notified of their right to a hearing before Council to determine the appropriateness of the disconnection.
6. If the Town customer desires to request a hearing contesting the fairness of disconnection of their combined utility bill, the customer must request such hearing in writing at the office of the Town prior to the date of disconnection, as provided on the disconnection notice.
F. COLLECTION THROUGH TAX DUPLICATE AND CIVIL ACTION
1. As provided by the Statutes of the State of Indiana, delinquent fees may be made a lien against the property served through certification through the Auditor and the Recorder of Whitley County, Indiana.
2. In addition to the forgoing remedies, the Town shall have the right to bring a civil action to recover any delinquent fees together with interest and reasonable attorney’s fees. The Town shall also have the right, as provided by the Statutes of the State of Indiana, to foreclose any lien established under the provisions of this section with recovery of the charge, interest, and reasonable attorney’s fees.
SECTION II: REVENUES
A. SEPARATE SEWER AND SEWER DEPOSIT FUNDS
1. The revenues collected by the Town from the monthly sewer user fees are deposited in a separate, non- reverting perpetual fund. This fund has been established for the purpose of accounting and paying the direct and incidental costs of sewer collection, treatment, and distribution. When necessary, Council may approve additional operating transfers into or from this fund.
2. The revenues collected by the Town from security deposits are deposited into the sewer meter deposit fund.
3. Accurate and precise records of all receipts and disbursements shall be maintained by agents of Churubusco Utilities and shall be subject to inspection.
SECTION III: EFFECTIVE DATE
This Ordinance shall be in full force and effect as of the date of adoption, upon hearing according to law and passage by t Council. The user fees established herein shall take effect as indicated in Section I.C.1., and shall remain in effect until amended or changed by Council. This Ordinance shall amend or revoke any provision of previously adopted Ordinances in conflict herewith.
Signature Page to Follow
PASSED AND ADOPTED by the Town Council of the Town of Churubusco, Whitley County, State of Indiana this 16th day of November, 2022.
ATTEST: ________________________________
Devin Keener, President
_______________________________
Madalyn Sade-Bartl, Clerk-Treasurer ________________________________
Mark Pepple, Vice-President
________________________________
Nathan Van Horn, Council Member
