Medaryville council introduces rate increase
Members of the Medaryville Town Council have taken the first step toward a rate increase as they introduced the first and second reading of two new ordinances.
The council has been working for several months toward a new water tower and are now trying to fund the project that will cost about $338,655 more than anticipated. As a way to cover that cost and continue with the project, the council approved to obtain a 10-year state revolving loan in the amount of $350,000 with 2% interest, during a meeting on Oct. 24.
The rate study estimates that a household that uses 3,000 gallons of water a month will see about a $10.43 increase or a total water, sewer and sanitation bill of $101.98 minimum per month. The increase includes tax. Clerk-treasurer Judy Harwood said not only will there be an increase to the water rate but also the sanitation rate that increases every three years.
Harwood anticipates residents seeing an increase in the water rate for the next three years. In 2020, the rate will be a little more than $10 with an increase of 2% for the next two years. That increase will help cover the debt service, the bond, interest and rebuild some of the funds that have been depleted because of the project.
The council approved the first and second readings of the two new ordinances regarding the rate increase and the proposed construction of additions and improvements during a special meeting Monday afternoon.
The third and final reading of the ordinance could be approved during the next regular town council meeting on Wednesday, Nov. 20. The town will also be talking about the project costs.