Local City Considering Water Rate Increase

By: Corbin Lingenfelter, News Director

Huntingburg- A study was done recently on how much the City of Huntingburg needs to charge for its water services.

The Huntingburg Utility Rate Advisory Board (URAB) convened for a public meeting on Monday night to discuss the findings of a recent utility survey of the city's water cost. The findings showed a possible increase in the water rates may be needed to continue maintenance on the new water treatment facility constructed in 2020 and to fulfill other payment obligations to the city and also the Patoka Lake Regional Water District. 

“What the rate study does is it shows first of all what is necessary to be collected in our water rates as a result of Patoka Lake Water Regional Water Districts recent rate increases.” Shared City Attorney Phil Schneider, “In addition the rate report shows a general increase that’s necessary in order to meet all the revenue requirements and operating requirements of the utility. That is an additional six-percent over existing rates.”

As of now, the city gets 50% of its water from the Patoka Reserve. That is the bare minimum required according to the contract signed in 2019, when the rates last increased. Patoka Reserve recently announced they plan to implement an increased rate of $0.39 per 1,000 gallons of water, and continue rate increases every two years, according to Attorney Schneider. The belief is eventually the city will no longer need to purchase water from Patoka and will instead make their own at the new facility.

“Right now we are bound by contract to buy a minimum amount by Patoka,” Schneider shared, “That’s all we’re (Huntingburg) buying, whatever we’re required to. Patoka came at a time when we really needed them and the only way that Patoka could issue bonds to finance the plant was to get long term commitments from customers.”

Also included in the study was a look at the future financial requirement to be paid to the city. The breakdown of those fees are:

• Pro Forma Operating Expenses: $2,650,564
• Maximum Annual Debt Service on 2019 Bonds: $515,475
• Payment in Lieu of Taxes: $200,000
• Contributions made to the City: $50,000
• Allowance for Working Capital/ Bond Coverage: $187,590

Chemical treating products are also said to be up 30% in price. 

The amount of the increase will vary depending on how much water is used by an individual. The study highlighted some of the projected increases for the most common uses:

• Retired Couple using 2,000 gallons/year- $3.21 increase
• Family using 5,000 gallons/year- $5.51 increase

Huntingburg Water Superintendent Jerry Austin says the best way to keep your water rates down is to be water conservative. That involves taking shorter showers and being aware of water leaks. The city is also working with the businesses it provides to help be more efficient with their water usage. 

A public hearing is scheduled for Tuesday night, where a final vote will be made on the proposed increase. If passed, the rate increase will go into effect on February 1st, 2023.