Brownsburg council approves modest COLA increase for water and sewer after public pushback

The Brownsburg Town Council on Dec. 18 approved annual cost-of-living adjustments for the town’s water and sewer rates — a 1.5% increase for water and 1% for sewer — after staff and the town’s rate consultant outlined capital needs and a longer-term rate shortfall.

Council President said the law requires the council to consider the COLA before year-end, but residents at the meeting pressed elected officials for more disclosure about who bears the cost. Rob Bridal, a resident who spoke during public comment, urged the council to reject the increase, saying a promised staff report showing how homeowners may subsidize large businesses “has not surfaced” and asking, “How much are town taxpayers essentially subsidizing these businesses who are already getting huge incentives from the Town of Brownsburg?”

Why it matters: Staff and the rate consultant told the council the current water and sewer funds face structural pressure. The town’s consultant provided comparative charts and said that, on several measures, certain commercial customers pay rates comparable to or slightly higher than residential customers at various volumes. The consultant explained the town also uses a minimum-charge structure (a 2,000-gallon minimum) to ensure baseline revenue to maintain availability of service.

What staff said: Sean, the presenting staff member, and Robert Reynolds, the town’s rate consultant (LWG CPAs and Advisors), walked council through the 2025 rate study. Reynolds explained the minimum-charge rationale and presented example comparisons at 5,000 gallons showing commercial users can pay more per thousand gallons in some bands. Sean summarized capital needs, saying the town is refurbishing older East-plant equipment, replacing electronics and variable-frequency drives, rebuilding aeration rings and motors, and upgrading lift stations and HVAC systems.

Rate numbers and options: Sean told the council, “The rate study indicated that we needed to do a 16% increase for water and a 9.65% increase for sewer,” language that staff used to frame the difference between a full cost-recovery adjustment and the smaller COLA proposed. Councilmembers and residents debated whether the town should pursue larger near-term increases to close the gap, change the ordinance to charge commercial customers differently, or consider selling the utility as a last resort. One councilor said selling would likely produce a large, immediate increase in residential bills; council discussion noted selling would transfer control and could reduce local service quality.

Public concerns: Multiple residents raised three recurring concerns: (1) a requested staff report on how much homeowners subsidize businesses had not been publicly posted; (2) whether large commercial customers benefit from discounts or special arrangements (staff clarified that some stormwater discounts are governed by separate ordinances and that certain negotiated arrangements were struck when specific businesses located here); and (3) how COLA revenue would be used. Sean and other staff said all COLA revenue goes to the water and sewer funds and is earmarked for plant upgrades and maintenance.

Council action and vote: Councilmember [motion made from the dais] moved to approve the annual COLA rates for water and sewer fees; the motion was seconded and passed on a roll call vote with one member opposed. Council President called the roll: Adams voted opposed; Lacy, Simpson, Hillman and the president voted in favor. The council noted last year’s COLA was not implemented and that the smaller annual COLA schedule is intended to smooth the impact on residential customers.

What’s next: Staff said more detailed reports and the underlying rate-study documents are available or will be provided to the council and that the town intends to continue scheduled capital work on the East plant and lift-stations next year. Councilmembers signaled further discussion in coming months about whether to pursue different rate structures for commercial customers or other remedial options.

Quote selection: “The rate study indicated that we needed to do a 16% increase for water and a 9.65 increase for sewer,” Robert Reynolds said during the presentation, framing the long-term funding gap. Resident Rob Bridal told the council during public comment, “So I’m asking you guys to reject this tonight just on the fact that it appears your town staff has not done a clear directive from this council.”

Ending: The council approved the modest COLA and directed staff to continue providing details about the planned capital projects and the components of the rate study; councilmembers and residents said they expect continued follow-up on the questions raised about subsidies and possible ordinance changes.