Board Members Emily Shipley, left and Parke Smith, secretary, deliberate on a sewer rate increase at the Lakeland Regional Sewer District meeting Dec. 21. InkFreeNews photo by Phoebe Muthart.

By Phoebe Muthart
InkFreeNews

Lakeland Regional Sewer District Board of Trustees approved a new sewer rate at its regular monthly meeting Wednesday night, Dec. 21.

“Adjustments to our sewer rates need to be considered,” said President Jim Haney. “We need to take action now.”
There are several reasons for the rate increase. According to Jeff Rowe of Baker-Tilly Municipal Advisors, an engineering rate study was conducted and determined the need.

“Since 2017, the rate has not increased,” he said. “But a lot has changed since then.”

He said the daily maintenance costs are one factor. The district’s financial plan was also assessed.

“We have debt going back to the original construction,” he said. “There’s a requirement to pay off the debt.”

One of the largest costs is the repayment of the U.S. Department of Agriculture’s loan, which costs $784,000 per year. In addition, LRSD needs to set aside another fund each month until the loan is fully funded. That cost is about $78,000 per year. LRSD’s current sewer rate is $69.95.

During the public comment period, several people spoke out about the rate increase. One man asked about capacity levels. Rowe said he wasn’t sure but, “we try to be very conservative.”

Kerry Stover of Warsaw, asked why the need for a rate increase when the district has so much excess money in reserves. The district, he said, has about $2.3 million in reserves, a figure he got from the district’s website.

Rowe said, “We did look at that.”

The USDA requires the district to have a reserve fund that can’t be spent. In addition, another account must be kept for maintenance and operating costs.

“A lot of that money LRSD can’t touch or fall below,” Rowe emphasized.

Board Vice President Bob Marcuccilli said, “Our expenses are going up.” He said sewer systems can be very corrosive and lines can get clogged; therefore, there are repair costs involved.

Rowe said some sewer districts have higher rates and some have lower sewer rates.

“We are not the highest,” he said. Districts range from the lowest at $71.85 (Turkey Creek Regional Sewer District) to the highest at $93.43 (Steuben County).

After the rate hearing, the board considered and acted on an amended rate ordinance. The rate increase is $8.70. The revised rate of $78.65 per dwelling unit becomes effective Jan. 1. The rate is not being phased in.

In other news:
• The board agreed to purchase a backup pump for Lift Station One at a cost of just over $29,000 from Thompson Pump.
• Haney was chosen to speak to Jellystone Campground about hooking up to LRSD.
• DLZ gave its engineering report.
• A small purchases committee was accepted, with three board members chosen to approve necessary minor costs.
• Mike DeWald gave the treasurer’s report.
• Astbury gave its monthly report regarding panel inventory and pump testing.

The next meeting is 6 p.m. Wednesday, Jan. 18, at LRSD, Warsaw.