Sellersburg council reviews Baker Tilly water and sewer rate study, directs staff to draft ordinance

Consultant Andre Riley of Baker Tilly presented the Town of Sellersburg’s water and sewer cost‑of‑service study at the Feb. 23 council meeting, outlining several rate options and recommending phased increases to cover rising operational costs and debt obligations.

Riley said the town’s water rate structure had multiple declining consumption brackets and a minimum charge; staff evaluated options including reducing bracket tiers (from six to three), eliminating the minimum charge, or adopting base meter charges by meter size. For water, the preferred option discussed earlier by council would compress brackets to three and keep a minimum charge while shifting more cost recovery to larger users.

On the sewer side, Riley offered four alternatives that spread rate increases over three to five phases. He provided example impacts for an average customer using 4,000 gallons: an example three‑phase alternative began with a $6.64 increase in phase one with smaller increases later; a more levelized alternative would halve the first‑phase impact by using some cash reserves. Riley said the town’s operational costs had increased substantially since the last rate action in 2021, with chemical and supply costs notably higher.

Council members asked for the supporting packet materials to review figures and comparisons to other utilities. Council did not take an immediate vote to change rates; instead members voted to direct the town attorney and staff to prepare a draft ordinance and the required public notices so the council can consider formal adoption in a later meeting. The motion to proceed was approved (mover: Magda; second: Randy).

Next steps: staff will prepare an ordinance and public notice based on the consultant’s recommended approach; the council intends to hold future hearings before any rate increases become effective.