BY MADDIE JO SHULTZ
Times-Union Correspondent

CLAYPOOL — The Claypool Town Council discussed a 64% increase to the town’s sewer rate at Tuesday night’s meeting.

The town of Claypool has been working with Baker Tilly of Chicago, Ill., to account for the loss of revenue from the water utility following its sale. The town should maintain operating disbursements of $174,000 plus an additional $10,000 for reserves. With $112,000 currently in operating, the town needs to gain $72,000 in order to break even.

Adam Wilcox, of Baker Tilly, presented wastewater rate suggestions which included immediate rate increases as well as a future increase dependent on the cost of planned sewer system improvements. Wilcox said the town has not had a rate increase since 1999, and a 64% increase is suggested. The increase must go into effect by July at the latest.

At a special meeting on May 11, according to the approved minutes, the Council agreed on a possible 35% increase.

The town’s current wastewater minimum, not accounting for additional usage, is $53 per household, according to Clerk-Treasurer Pat Warner. A 35% increase would raise that to $71.55; an increase of 64% would raise the minimum to $86.92.

Wilcox said if the town is able to acquire state-revolving funds and grants with loan forgiveness for the wastewater utility improvements, there should not be another rate increase. If the town must borrow the funds with interest, rates could increase again.

With sewer improvement project costs estimated at $2.6–$4 million, a worst case scenario would be a total 200% sewer rate increase, or roughly an additional $35 per month per household for every $1 million borrowed.

Town resident Niki Miller spoke on behalf of the community, saying many lower-income households would not be able to afford these increases.

Council President Benny Stage Jr. said they will wait to talk to Tyler Coffel, the town’s primary Baker Tilly representative, before making a decision on the rate increase.

In other business, Warner is removing water charges from residents’ utility bills since water is now billed separately from Indiana American Water. Residents will not be charged late fees until the end of May while this issue is resolved. If a resident already paid for this month’s water charge in error, their account will be credited.

The council approved a $10,000 agreement for fire protection and an ordinance amending parking for Noah, Rebecca and Section streets.

Town Marshal Ben Sanders asked the Council if he could purchase four “Slow – Children at Play” signs for Main Street and Graceland Avenue. The council approved the signs.

Sanders logged 72 reserve hours in April.

The council will next meet at 7 p.m. June 20.