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Angola hears water and wastewater financial reports; consultants flag potential rate increases
Summary
Consultant Baker Tilly told the Angola Common Council the water and wastewater utilities finished 2024 with strong cash positions but a five‑year capital plan (about $6.4M) that, under current assumptions, could require phased rate increases—roughly 29% for water and about 14% for sewer—pending further study and council decisions.
Angola Common Council members heard a detailed financial briefing on the city’s water and wastewater utilities that showed healthy reserve levels but also forecasted capital needs that could put upward pressure on rates.
Jeff Raul of Baker Tilly presented the annual financial management reports, saying the water utility ended 2024 with roughly $250,000 more cash and about $2.7 million above its minimum reserve requirement, while the sewage works increased cash by about $579,000 and held more than $3.0 million above required reserves. Raul said operating revenues ran slightly under budget for both utilities but operating expenses were materially below budget, which helped net positive cash flows.
The presentation outlined a five‑year capital improvement plan totaling about $6.4 million. Preliminary funding assumptions include roughly $4.0 million to be financed with bonds (assumed in 2026–27), approximately $400,000 from TIF, and $753,000 from prior bond proceeds; the consultants estimated about $1.2 million of net rate‑funded capital over five years (roughly $238,000 per year).
Raul said projected revenues from the Pokagon extension were calculated from engineers’ assumed flows and estimated at about $43,000 per year for water; the model did not assume additional new customer connections as a baseline. Under the model assumptions Baker Tilly presented, a one‑time 29% water rate adjustment would cover the budgeted operating costs, debt service and the planned rate‑funded capital; a preliminary sewer rate adjustment of about 14% was noted for the sewage works. Raul emphasized the numbers are model outputs under current assumptions and could be phased over multiple years.
Council members pressed staff and the consultant on whether below‑budget spending reflected deferred maintenance or conservative budgeting. Raul noted the city prepared asset management plans for both utilities (a requirement he said was enacted by a recent legislative change) and that those plans schedule replacements and estimate costs across a 20‑year horizon. Council and staff discussed phasing increases, using non‑utility city funds to reduce rate impacts, and waiting for a forthcoming comprehensive financial study before settling on an ordinance.
Raul also pointed out that outstanding 2010 sewer bonds mature in 2029, which would free about $175,000 per year beginning in 2030 and could reduce future rate pressure. The consultant said recommendations would be refined and a formal ordinance introducing any rate changes would follow the statutory process, including public notice and a public hearing. The council indicated it expects further recommendations in early 2026 and that any ordinance would go through the required three readings and hearings before final adoption.
