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Thorntown approves amended water rates and revenue bonds amid concern losing $750,000 OCRA grant if scope changes
Summary
Council adopted amended water rates (Ordinance 2026‑03) and authorized waterworks revenue bonds (Ordinance 2026‑02). Consultants warned that changing the water‑plant scope risks forfeiting an OCRA grant of $750,000 and future grant competitiveness.
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The Town of Thorntown on March 2, 2026 amended and adopted a water‑rate ordinance and authorized revenue bonds to support a planned waterworks project, after public comment and consultant briefings.
Citizen George Giden asked the council to delay a rate increase until construction plans for the planned Water Treatment Plant were reviewed. Council President Dave Williams summarized engineer recommendations that building the planned, expandable plant now is the better long‑term option: refurbishing the existing plant would limit future expansion and likely raise future costs. Municipal consultant Jeff Wolfe cautioned that changing the project scope would likely forfeit an OCRA grant of $750,000 and would subtract 50 points from future OCRA applications for five years, making the town unlikely to win additional OCRA grants during that period.
Legal counsel Amy Nooning and Jarrod Hall of Krohn & Associates presented a minor amendment to minimum‑gallon verbiage and adjusted rate numbers in the ordinance. Bruce Burtner moved to amend the rate ordinance; Randy Bruder seconded. The amendment and then the ordinance adoption each passed 5‑0. On second reading, the council adopted Ordinance 2026‑02 authorizing issuance of waterworks revenue bonds; that motion also passed 5‑0.
Council members indicated the timing of the rate increase reflects deferred maintenance and past reluctance to raise rates. A suggestion by a resident to phase in rate increases gradually was noted but not adopted. The council proceeded with the amended rate ordinance and bond authorization; staff follow‑up and financing steps were directed.
