Proposed water rate changes

ORDINANCE 2018-09

AN ORDINANCE TO AMEND THE WATER RATES AND CHARGES FOR THE USE OF THE SERVICES RENDERED BY THE TOWN OF CHURUBUSCO

WHEREAS, the Town of Churubusco, Indiana (the “Town”), has in operation and waterworks systems pursuant to I.C. 8-1.5-1 et seq. (the “System”), for the purpose of treating and distributing water to the residents of the Town; and

WHEREAS, the Town Council of the Town (“Council”) has previously by ordinance established the existing schedule of user rates and charges for water service; and

WHEREAS, the Town has employed O,W, Krohn and Associates. (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 March 2, 2018 (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, operating charges, upkeep, repairs, depreciation, including increases in such costs, and interest charges on bonds or other obligations; and

WHEREAS, the Rate Report indicated a need for phased increases in the rates and charges to be imposed; and

WHEREAS, pursuant to Ind. Code §8-1.5-3-8.1, 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 §8-1.5-3-8.1 authorizes this Council to adopt by ordinance a nondiscriminatory, reasonable and just schedule of fees for water services rendered by the Town’s water works system; and

WHEREAS, Ind. Code §8-1.5-3-8.1, authorizes this Council to exercise reasonable discretion in adopting different schedules of fees, or making classifications in schedules of fees, to ensure that the rates and charges produce an income sufficient to maintain the utility property in a sound physical and financial condition to render adequate and efficient services, and whereas rates and charges too low to meet these requirements are deemed unlawful; 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 water system; and

WHEREAS, the Clerk-Treasurer of the Town has given notice of the public hearing on proposed rates pursuant to the Act; and

WHEREAS, a public hearing was held before this Council on _____________________ at which time testimony from interested persons was received, after introduction of this Ordinance and pursuant to the Act.

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, 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:

1. The rates set within are based on a single meter and service supplying not more than a single dwelling unit, consisting of an individual house, apartment, living quarters, or mobile home.  The town reserves the right to require that all future dwelling units or apartments be individually metered and plumbed before service is established.

1. No consumer shall submeter or resell water service to others. Any violation of this provision shall subject all water service to the premises to be disconnected until the violation is corrected to the satisfaction of the city.

1. Water furnished to temporary users, such as contractors or temporary events, shall be charged on the basis of the above rates as estimated by the Waterworks Superintendent.

D. APPLICATIONS AND DEPOSITS:

1.  Users are required to complete an application, provide photo identification, and a security deposit of $75.00 shall be collected from all prospective customers prior to beginning services.

2. Such security deposits shall not accrue interest payable to the user.

3. Deposits shall be held by Town for a twenty-four (24) month period or when service is terminated, whichever occurs first. Deposits shall be applied to the user’s account. Should the deposit result in a credit to the account, Churubusco Utilities shall refund the amount to the user within thirty (30) days of their final billing.

E. LIABILITY FOR PAYMENT

The user charges imposed under this section shall be billed to the person who is billed for water service, unless by contract with the Town another person assumes liability for payment. If an occupant, leasee, or other non-owner is billed, the current property owner of record of the premises to which water service was supplied is responsible for payment of the bill, irrespective of who incurred such unpaid bills or when such bills were incurred, or who owned or occupied the property at the time the bills were incurred. Such 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 the Churubusco Town Council to determine the appropriateness of the disconnection.

6. If a Churubusco Utilities 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 Churubusco Utilities prior to the date of disconnection, as provided on the disconnection notice.

7. Should disconnection occur, a reconnection fee of $30.00 will be assessed and charged to the user’s account. The user will be ineligible for reconnection until the account is paid in full.

E. 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

1. SEPARATE WATER AND WATER DEPOSIT FUNDS

1. The revenues collected by the Town from the monthly water 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 water collection, treatment, and distribution. When necessary, the Town Council may approve additional operating transfers into or from this fund.

1. The revenues collected by the Town from security deposits are deposited into the water meter deposit fund.

1. 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 January 1, 2019, upon hearing according to law and passage by the Town Council. The user fees established herein shall remain in effect until amended or changed by the Town Council of the Town of Churubusco. This Ordinance shall amend or revoke any provision of previously adopted Ordinances in conflict herewith.

PASSED AND ADOPTED by the Town Council of the Town of Churubusco, Whitley County, State of Indiana this ______ day of  _______________, 2018.

ATTEST:                                                                             ________________________________

Frank Kessler, President

_______________________________

Madalyn Sade-Bartl, Clerk-Treasurer                                 ________________________________

Mark Pepple, Vice-President

________________________________

Bruce Johnson, Council Member