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Darmstadt Council Weighs Autopay Option as Sewer Utility Shows $96,263 Year-to-Date Loss
Summary
The Darmstadt Town Council discussed an autopay option for sewer billing and the long-running sewer fund deficit at its Nov. 19 meeting. Clerk-Treasurer Mallory Lowe said setup and monthly fees will cost the utility and that the sewer fund has a YTD loss of $96,263.
The Darmstadt Town Council discussed a proposed autopay option for sewer billing and the sewer utility’s continued financial shortfall at its Nov. 19 meeting.
Clerk-Treasurer Mallory Lowe outlined the proposed autopay arrangement with Old National Bank and Keystone Software, saying the vendors require NATCHA ACH file formats and that the sewer department would bear startup and recurring costs. Lowe identified a one-time software setup fee of $2,390, an Old National monthly fee of $43 plus $0.35 per resident for accounts above the first 50, and an annual $1,000 fee to Keystone.
Lowe said the bank would automatically debit those fees from the sewer checking account and warned the autopay program would not produce revenue for the utility. "The Darmstadt Sewer Utility gets absolutely nothing from this program and in fact it will cost our Sewer Utility quite a bit of money," she said.
Council members discussed next steps but recorded no formal vote on adopting autopay. Ray Engler said the town needs a technical review with the software vendor and staff to understand the monthly workload and compatibility before any final decision.
Council and staff also revisited the sewer fund’s recent performance. Lowe reported October sewer revenue of $65,181 against expenditures of $83,125, a roughly $17,000 loss for the month and a year-to-date loss of $96,263. The deficit was raised during discussion of whether to reinstate a summer averaging program for residential sewer bills; some council members favor reinstatement if it can be administered fairly, but Lowe and a public commenter noted the program previously contributed to losses.
Resident Carol Schlump asked why the town would restart a program that had previously caused losses; Lowe replied she had offered summer averaging for 15 years and that the utility had continued to lose money, prompting the council in a prior period to terminate averaging and raise sewer rates four times over three years.
The council directed staff and the town attorney to prepare any necessary ordinances and to meet with the software vendor for technical evaluation. No ordinance was adopted at the meeting.
