Tipton Utility Service Board approves resolutions to raise city water and sewer rates

The Tipton Utility Service Board on June 1 approved two resolutions that will send proposed increases in water and sewer rates, along with higher new-connection (availability) fees, to Tipton City Council for the required public hearings and ordinance process.

The board voted by voice to approve resolution 2026-3 (water) and resolution 2026-04 (sewer). The measures, if adopted by council, are planned to take effect Sept. 1 and would first appear on customers’ October bills.

Jared Hall, a consultant with Cronin Associates, told the board the city’s test-year revenue shortfalls require adjustments to rates and to charges that fund depreciation and operating reserves. “It’s about $5.50 on the average customer,” Hall said, referring to the proposed increase that would raise the municipal 4,000‑gallon water rate from $20.50 to $26.

Hall said the wastewater 4,000‑gallon charge would increase from about $41.53 to $52 under the consultant’s recommendation. Hall described two scenarios analyzed for wastewater (one including a potential bond that the board is not pursuing) and said the recommended rate covers operating costs, depreciation and a roughly $470,692 revenue shortfall in the test-year projection.

Both utilities would also see higher availability (system development) fees for new connections. Hall recommended raising the residential water availability fee from $250 to $1,350 (for a 5/8‑inch meter) and the wastewater availability fee from $250 to $1,750 (escalating by meter size). Hall explained availability fees are intended to let new customers “buy into” capacity built by previous ratepayers; staff emphasized these fees affect only new connections, not existing customers.

The board was also asked to adopt connection-fee changes: the water connection fee remains proposed at $1,300, while the wastewater residential connection fee was proposed at $1,500 or actual cost to allow recovery of unique site expenses such as road cutting.

Hall presented the financial detail underlying the proposals: a water revenue requirement of about $1,515,200 versus $1,195,845 in test-year revenues (leaving a shortfall of $319,355), and a wastewater revenue requirement of about $2,364,600 against roughly $1,893,898 in test-year revenues. Hall and staff said the increases would keep Tipton’s rates competitive with peer communities.

Staff said the same presentation will be delivered to Tipton City Council, tentatively scheduled for June 22, followed by a public hearing and a second reading. If council approves, staff said the ordinances would be adopted with a planned Sept. 1 effective date.

Board action on the resolutions was taken by motion and voice vote; no roll-call tallies were recorded in the meeting transcript. The board approved the claims and minutes earlier in the meeting and then opened the floor to public comment. Resident Bob Ed Typton asked whether the increases apply only inside city limits; staff clarified they apply to the city service area (which includes some customers outside the municipal boundary), and that Sharpsville and Kemp wholesale customers were being handled by equal-percentage adjustments and had been notified.

The board adjourned after closing public comment. Staff said printed and digital copies of the rate materials will be available at the utility office and can be emailed on request.