5/11/2008
Public hearing on water rate increase
To be held Monday before city council meeting
JENNIFER GORDON
staff writer

BICKNELL - City council members here will hold a public hearing at 7 p.m. on Monday in conjunction with the monthly council meeting. The hearing will center around raising water rates, and while most people haven't complained about the proposed increase, two residents are voicing their opposition to the move.

"The city should start off going through the water department to cut down on overhead," said resident John Stanczak. "You do what you can to cut labor and fuel costs, then you look at

increasing rates."

Stanczak, who last year unsuccessfully sought the Republican Party's mayoral nomination here and later ran, again unsuccessfully, as an independent candidate for a seat on he city council, said he believes the department has more employees than is needed and that a rate increase will dissuade people from moving to town.

Mayor Jon Flickinger says the city has already made as many cuts as possible and that the rate increase is still necessary.

"Myself and the council - we don't want to see rate increases any more than anyone else does because we don't want to have to pay more, but this is needed," he said. "The council is looking at ways to cut back on all city expenses, not just water or sewer. With the budget cuts the city is facing in the next two years because of House Bill 1001, we will have to find a way to keep costs down without sacrificing service."

Flickinger said the city will be borrowing golf carts from the Bicknell Country Club to use for reading water meters.

"That will save on fuel costs and it's fuel costs that are hurting us, just like everyone else," he said. "We have to pay more now for chemicals we use to treat the water and the sewer. Anything that is transported, whether by train, truck or even boat, is costing more. There are a lot of factors that apply here that people just don't realize. We aren't just raising the water rates on a whim."

Board of Works member Francis Carie said the city has cut costs significantly over the years.

"We used to have five people working in the water department and now we are down to two full-time and one part-time employee," he said. "Raising water rates is our only option for us to keep the budget in the black."

Carie said the city hasn't raised water rates in 25 years.

"Some citizens suggested gradual annual increases to the water rates so the town wouldn't be hit with a large rate increase ever again, but I'm against that," Carie said. "We don't want to raise rates just because - so, we are going to keep the (water) committee on it and have them report back to us annually."

The water committee is comprised of city employees, residents and council members, including Frank Gugliotta, who told the council in March the rate increase is needed because of a payment of $12,000 a month. The payment goes back to a loan the city got on the water plant when it was built in 1979. The debt is not scheduled to be paid off until 2019.

That payment and the regular costs of operation and maintenance mean the city starts each month with the budget in the red.

The proposed water rate increase ordinance suggests increase from $4.04 to $7 per 1,000 gallons with a cap of $6 for use of over 30,000 gallons. The ordinance also allows for a nearly 50 percent increase in monthly meter fees and a tap charge of $750 for a 3/4 inch or smaller tap. Previously, residents only had to pay $198 for a 3/4 inch or smaller tap.

Stanczak says increasing the rates is a sure fire way to drive residents out of town.

"When the council raises those rates that increases the cost of living here, which cuts into the population and decreases city revenue," he said. "I'm against anything that tears the community down and that is what this is doing - just like the sewer plant did. We needed a new sewer plant but not the most expensive one."

Stanczak said the increases will also dissuade new residents and businesses from coming to Bicknell.

"The $750 charge for new hook up like putting up sign that says 'Don't apply'," he said. "Business will just go to Vincennes, where it's less expensive."

Another resident, Ron Ackman, says he too, objects to the water rate increase.

"I think it is premature," he said. "I'm not positive the city has done all they can to address cutting back costs."

Ackman, who ran unsuccessfully as a Democrat for a seat on the council last fall, said he'd be in support of a minimum fee charge for city residents over a rate increase.

"In Oaktown they charge an $18 minimum fee," he said. "Even if the water is shut off and they aren't supplying any water, property owners still have to pay that $18 monthly minimum fee."

Water Supt. Earl Horst told council members in March that approximately $500,000 in repair and maintenance work needs to be done to the system.

"One of our wells hasn't been operational for more than four years," he said. "We have a main line running under Ind. 67 and it needs to be replaced because if it goes - we are talking about a huge expense."

Flickinger said only two communities in the northern Knox County area have lower water rates than Bicknell will have with the rate increase.

"Rates for Freelandville are $5.46 per 1,000 gallons and for Oaktown it is $6.70 per 1,000 gallons," he said. "Sandborn and Edwardsport rates were more than $7 per 1,000 gallons."