Westville adopts water-rate ordinance tied to correctional-facility connection; council votes 4-0

Westville Town Council adopted Ordinance 20 25 6 on a unanimous 4-0 vote, approving new municipal water rates and a meter-size fire-protection surcharge tied to the recent connection with the Westville Correctional Facility (WCC).

Tyler, a consultant from Baker Tilly who presented the town's rate study, told the council that “the post project operating budget is $1,100,000,” and that the WCC will pay roughly “73%” of plant-capacity–related charges, leaving town customers to cover the remaining share. He also described a payment-in-lieu-of-taxes calculation the study estimated at about $170,000 per year to approximate property-tax liability for the WCC.

The study and the ordinance introduce a monthly fire-protection surcharge assessed by meter size and an equivalency factor. Tyler said the ordinance sets the base surcharge for 5/8-inch and 3/4-inch meters at $3.45 per month: “the rate ordinance says 5 eighths inch through 3 quarter inch will get $3.45.” Using equivalency factors, larger meters would pay multiples of that amount (example given: a 2-inch meter would be $3.45 × 8 = $27.60 per month). Tyler stated the $3.45 figure is expected to be effective for roughly the next 10–12 months while the town proceeds with larger distribution work and long-term financing.

Council members questioned the study's assumptions and timing. One council member asked whether the no-project scenario assumed the town would still have made the same facility improvements; Tyler responded those improvements likely would have been needed at some point but that the jail (WCC) funded a large share of near-term improvements, reducing the town's immediate operating-cost pressure. Tyler showed a 'no-project' scenario indicating the town could have faced a roughly 59% rate increase by 2028 without WCC participation; he said WCC's connection reduces that shortfall by roughly $420,000.

During a brief public-hearing portion and discussion, the consultant and council clarified that some charges now paid through property taxes would be shifted to water bills under the ordinance and that WCC's billing and debt obligations are handled separately. The consultant said WCC revenues are intended to service WCC bonds and related debt, while the town remains responsible for repayment of preexisting town bonds.

Procedural actions: a motion to approve Ordinance 20 25 6 on first reading was made by Albert (council member) and seconded; roll-call votes were recorded and the chair announced passage 4-0. The council subsequently moved to suspend the rules and adopt the ordinance immediately; that motion also passed 4-0. The meeting adjourned shortly after.

Key quantitative points and clarifications from the presentation: the post-project operating budget was reported as $1,100,000; WCC was described as paying about 73% of plant-related operating costs and 73% of a property-tax–equivalent PILOT estimated at $170,000 per year, leaving town customers responsible for the remainder; the base fire-protection surcharge for 5/8- and 3/4-inch meters is $3.45 per month; Tyler reported WCC-generated revenues of about $2,800,000 per year. Some figures in the rate study narrative were difficult to read in the transcript and are noted below as “not specified” where the study language was unclear.

The ordinance text was read by title as “an ordinance amending the rates and charges of the municipal waterworks system in the town of Westville, Indiana.” The council adopted the ordinance and the meeting adjourned at 4:25 p.m.

Next steps: The ordinance was adopted; staff and the town will proceed with the financing schedule and distribution-project planning Tyler outlined, including short-term bond anticipation notes and later State Revolving Fund (SRF) long-term financing for construction.