Huntingburg Considers Moderate Water Rate Increase

Huntingburg residents could see modest increases to their water bills under a proposed rate adjustment. 

Buzz Krohn of O.W. Krohn and Associates presented an executive summary of his firm’s water rate analysis for the City of Huntingburg. The study was conducted by the financial consulting firm for the city. Krohn’s public remarks outlined a proposal aimed at keeping increases in the single digits through “more frequent, less hefty rate adjustments.” The last water rate adjustment was made in 2022. 

Key considerations in the rate study included allowances for increases in cash operating expenses as well as interdepartmental loan repayments. The adjustment would reflect the most recent Patoka Lake wholesale water rate increase. There would also be an allowance for $1.8 million of extra-ordinary capital projects. These include water treatment plant upgrades and rehabilitation of the city’s three overhead water storage towers. 

Krohn explained that current revenue requirements include: 
 Operations and maintenance expenses 
 Principal and interest for the 2109 bond that funded the new water plant 
 Current and proposed electric loan payments 
 Approximately $150,000 in annual payments for PILOT (Payments in Lieu of Taxes), which supports the general fund, and annual payments of $50,000 to the Civil City 
 Depreciation expenses 
 
The analysis determined that current revenue requirements are approximately $4.7 million, but current rates generate only about $4.3 million. The proposed increase is about $375,000 per year, or about 9%. Annualized back to 2022, that is about 2.25% per year. Average residential bills would see an increase of approximately $5 per month. 

The proposed increases will be evaluated by multiple municipal government bodies and would be subject to a public hearing before approval. If the water rate ordinance is approved, increases would be effective for the first full consumption period following adoption. This would most likely be in June, with billing in July. 

For more information on these and other updates, visit www.witzamfm.com/news 

 - Drew Hasselbring