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Thorntown utility board seeks 12% water rate increase; public hearing and ordinance required
Summary
The utility board voted to request a 12% water-rate increase to address rising expenses; the board said a prior study recommended a 62% increase overall and that a 50% increase previously was applied. A public hearing and ordinance would be required to enact the change.
The Town of Thorntown’s Utility Board has asked the council to pursue a 12% water-rate increase, a representative told the council at its Aug. 18 meeting. Max Allen reported the Utility Board unanimously approved requesting the increase, saying the water fund is covering operating needs but faces upcoming expenses.
Allen told the council that a prior rate study recommended a 62% increase overall and that the town had previously applied about a 50% increase; the board now seeks an additional 12% to further close the gap. "The Water fund is still getting by and has upcoming expenses," Max Allen said, summarizing the board’s position.
Council members were told that raising rates would require a public hearing and an enabling ordinance; no ordinance vote occurred at the meeting. The council discussed how payments in lieu of taxes and other revenue sources affect the utilities’ finances and emphasized the need to identify where the additional revenue would come from.
Why this matters: Water-rate changes affect all utility customers and may require public outreach and a formal ordinance process. The Utility Board’s request initiates a sequence that will include public notice, a hearing and a council vote before any rates change.
