TERRE HAUTE —
Terre Haute could see a doubling of sewer bills over the next two years to help pay for improvements to the city’s wastewater treatment facility.
Members of the Terre Haute City Council at their regular meeting Thursday night heard from a representative of an Indianapolis-based accounting firm stating that average monthly sewer bills would need to increase from $16.54 now to $32.42 in 2012 to pay for needed wastewater plant improvements.
“This isn’t going to happen overnight,” said Gerald Malone, a representative of Umbaugh and Associates, the accounting firm hired by the city. A first rate increase could take effect in July and the rest of the increase could take effect in January 2012, he said.
The higher sewer fees are needed to pay for approximately $100 million in improvements to the city’s wastewater treatment facility south of town. On top of those improvements – and not covered by the proposed increase – the city needs to spend about $50 million on its “combined sewer overflow” (CSO) problem, said Mayor Duke Bennett, who also spoke to the council.
Part of the $100 million in improvements to the wastewater treatment facility would also address the CSO situation, Bennett noted. The federal government is mandating that Terre Haute and other cities find ways to keep combined stormwater and wastewater out of rivers, such as the Wabash, during strong rains.
At present, the average Terre Haute sewer bill is significantly less than in many other Indiana cities such as Lafayette, South Bend, Evansville, New Albany, Columbus and Jeffersonville, according to information provided by Umbaugh. Even if the rate were doubled, Terre Haute’s average bill would remain lower than the average current bill in Riley, Rosedale, Farmersburg and Brazil. It would, however, be higher than the average current bill in several larger Indiana cities, according to Umbaugh.
Part of Terre Haute’s annual wastewater treatment expenses are covered by about $7 million in annual property taxes, Bennett noted.
Meanwhile, the council voted Thursday to approve a rezoning request to allow for the expansion of Andrews Towing on South 15th Street. The 7-2 approval came despite opposition from representatives of Mike’s Towing on Terre Haute’s north side. The council turned down a request for rezoning last year that would have allowed Mike’s to expand. Councilmen Neil Garrison, D-5th, and Rich Dunkin, D-1st, voted against the rezoning request.
The council also voted 8-1 in favor of transferring about $450,000 from the city’s “rainy day” fund to the employee group health plan. The plan has experienced some “unexpected high claims,” said City Controller Leslie Ellis. Without the transfer, the city would be unable to meet its medical bill obligations, she noted.
Council President Garrison voted against the transfer, saying the funding to pay for the group health plan should come from the city’s general fund budget. City officials have stated that the city is running below projected budget expenses this year and so the city should use those additional funds to cover the medical expenses, he said.
“Essentially what we’re doing is increasing the budget” by covering the medical expenses with rainy day money, Garrison said after the meeting.
Also Thursday, the council voted without opposition to increase the speed limit on South 13th Street between Hulman Street and Margaret Avenue from 30 to 40 mph. It also voted without opposition to convert a two-way stop intersection at 24th Street and Seventh Avenue into a four-way stop.
Also during Thursday night’s meeting, which was the first for new Councilman Pat Ralston, D-2nd, the council heard a request from Councilman Norm Loudermilk, D-3rd, for the city to investigate the possibility of suing the State of Indiana to prevent a statewide referendum on making property tax caps part of the state constitution. Loudermilk said the caps currently violate the state constitution.
“I think we need to stop this,” Loudermilk said. “Stop it before it gets to a constitutional vote and referendum and hopefully get this law repealed.”
Finally, the council confirmed 10-year real and personal property tax abatements for Sony DADC to expand its Blu-ray operations in Terre Haute. The abatement will save the company about $1.7 million in local property taxes over the next decade.
Arthur Foulkes can be reached at (812) 231-4232 or arthur.foulkes@tribstar.com.
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