By Liz Shepherd
InkFreeNews

CLAYPOOL — The Claypool Town Council held a public hearing regarding the potential for Indiana American Water to acquire the town’s water utility during a meeting on Tuesday, Jan. 18.

Discussions on this proposal first began in February 2020. The town and IAW entered an agreement to conduct an appraisal, at the expense of IAW, to determine the feasibility of IAW acquiring Claypool’s water utility.

The appraisal was made available to the public at the clerk’s office during the council’s December 2021 meeting.

“There are three reasons for considering the sale,” said Council President Benny Stage Jr. “IAW’s ability to complete costly capital projects while maintaining lower, more stable rates; utilizing proceeds from the sale to fund priority projects other than water improvements; and creation of an interest-bearing fund that will help fund gaps in the general fund.”

The appraisal estimates the town’s water utility assets value $1.5 million.

Claypool has not received a final purchase offer from IAW; the town has also not entered rate negotiations with IAW, but intends to at a later date.

“This meeting is to make the public aware of a potential deal with IAW,” said Stage.

Justin Schenider, IAW’s director of consumer affairs, attended the meeting to answer community questions and provide basic information. IAW currently provides services to Warsaw and Wabash. If Claypool were to sell its water utility to IAW, the facility would be operated out of the Warsaw site.

“Every decision we make goes back to the customers we serve,” said Schneider. “Assuming these conversations continue to progress, the first thing we’ll do is a full system analysis and develop a plan to ensure the citizens of Claypool will have safe, clean, and reliable water service.”

Also during the meeting, council voted to keep Stage as president for 2022.

Claypool’s next council meeting is at 7 p.m. Tuesday, Feb. 15.