Anderson council defeats water rate hike

Dec. 9—ANDERSON — The Anderson City Council has voted down a requested water rate increase to help pay for a planned $50 million upgrade of the city's water system.

The council voted 5-4 Thursday not to impose a 27% water rate increase for residential customers that would have been phased in over four years.

Voting against passage were Councilwomen Rebecca Crumes and Jennifer Culp and Councilmen Jon Bell, Ty Bibbs and Ollie H. Dixon.

The next step for Mayor Thomas Broderick Jr. administration is not clear.

The rate change would have begun in 2024 with an increase of $1.81 per month, then an increase of $2.08 per month in 2025 and a final increase of $2.16 per month in 2026. The current rate is about $22 a month for 500 cubic feet of water.

The proposed change also shifted some water utility costs to industrial users, who would have experienced a 98% increase over the four years.

The council was told that without adoption of the proposed water rate increase, residential customers would continue to subsidize industrial users.

Before the meeting, Broderick asked the council to delay considering the rate hike and accompanying bond ordinance until a special meeting later this month.

After the vote, attorney Chris Janak, representing the city, said the project's important because of the health and safety concerns the project raised.

"You're in a precarious position," he told the council. "What would you find acceptable?"

Bell said when the administration requested $9 million in American Rescue Plan funds for the project, the daily water use was 8 million gallons. The council is now being told the need is 12 million gallons daily.

"It seems to be an inflated number."

Bell said he wants to see a plan to address leaks in the system and a lowering the $3 million costs to prepare to get up to a $50 million bond.

Culp asked why the city didn't seek grant funds first and then ask for a rate increase to cover any remaining costs.

Janak said any rate increase has to be approved by the Indiana Utility Regulatory Commission, which can take up to 10 months.

"If we wait for grants and then go to the IURC, the grant funds might not be available."

Before the vote, Dixon said the planned water infrastructure improvements are needed.

"We're putting a burden on taxpayers," he said. "People are telling me not to raise the water rates."

Councilman Rick Muir said the project should have been started years ago.

"Prior administrations did not take steps to make sure this city has safe water," he said. "The rate increases take effect over several years.

"Delay working on the water system will increase the costs in the future."

The Broderick administration intended to use $9 million in American Rescue Plan funds and $9 million in tax increment financing dollars to pay part of the projected $50 million cost.

The initial plan is to expand the Lafayette treatment plant and well field, repair distribution lines and remove lead service lines in the city.

The long-range plan is to close the 100-year-old Wheeler Avenue treatment plant and replace it and its wells with a new facility on the city's south side.

Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.