Brownsburg council tables proposal to increase water and sewer COLA rates after questions on commercial breaks and funding

The Brownsburg Town Council on July 10 debated but ultimately tabled consideration of the town’s annual COLA adjustment for water and sewer fees, citing outstanding questions about commercial rate structure and use of existing fund balances.

Staff (identified in the meeting as Sean) presented an annual review of the ordinance establishing COLA increases for water, sewer and fire protection fees and described a series of capital needs: lead service line replacements (staff estimated $16 million), main extensions ($15.2 million, 3–5 year timeline), a 1,000,000‑gallon tank ($8.3 million), replacement of an older treatment plant ($7.8 million) and emergency generator needs ($1.32 million). Staff said the current average residential bill for a 4,000‑gallon user is about $57.78 per month and that the proposed COLA change would increase that by about $0.77 per month (about $9.26 annually) for the combined water and sewer portion per staff figures presented.

Staff said water revenues do not cover expenses and that the town has trimmed interfund transfers so that water and sewer funds operate like a business. Staff noted the town is “about 30% lower than the average” because of years without adjustments and that gradual rate increases help avoid sudden spikes. The presentation included possible impacts of different borrowing terms for a hypothetical $8 million project and the State Revolving Fund (SRF) program’s debt‑coverage requirements.

Councilors and members of the public questioned whether the town should differentiate commercial high‑use meters from residential users (for example, 2‑inch and larger meters). Staff said changing that would require an amending ordinance, a public hearing and readings; council requested staff prepare a redline ordinance and data on revenue impacts if commercial discounts or differential rates were removed.

After discussion, Councilor Lacy moved to table item 11.1 to the next meeting so staff can produce the requested data; the motion carried on a roll call with four councilors in favor and one opposed (Ms. Hillman). Town staff confirmed that if no council action were taken tonight the annual increase would automatically take effect, which was a factor in the debate.

Public commenters at the meeting urged the council to avoid increases, citing town surpluses and past decisions to hold rates, while other commenters supported targeted funding for utilities. Council members asked staff to return with: (1) data showing how many large‑meter/commercial accounts exist and estimated additional revenue if discounts were removed; (2) a redline of ordinance language to permit differential rates by meter size; and (3) further detail on SRF eligibility and the town’s project priority list.