By Becky Killian, Staff Writer
Officials approved rate hikes for Salem’s utility customers that will be implemented over the next three years. The votes came during a special called meeting of the Salem Common Council on Monday, Feb. 24. No members of the public attended.
The sewer rate increases were passed in a unanimous vote among council members who were present. Councilman Steve Crane was absent from the meeting.
The vote for the water rate increases saw a tie, with council members Dylan Moore and Danny Libka delivering the affirmative votes while Roger Pennington and Randy Lee Jr. voted against the increases.
Because of the tie, Mayor Justin Green voted in a second vote as allowed by state law. He joined Moore and Libka in the affirmative vote, which saw the same opposition from Pennington and Lee.
The rates will be effective 30 days after the approval vote, so the May bill should reflect the increased rates.
The current monthly water bill for utility customers who use the average of 4,000 gallons a month is $35. That rate would increase by $7 in 2025; $3 in 2026; and $3 in 2027.
A report provided by Baker Tilly Municipal Advisors indicated the rate increase is needed to pay for the utility’s operation and maintenance costs, which have increased by more than 50 percent. The utility also needs additional funds to build and maintain a required cash balance as well as fund capital projects.
The current monthly bill for sewer customers who use the average of 4,000 gallons a month is $40 monthly. That would increase to $47 in 2025; to $55 in 2026; and to $57 in 2027.
The reasons given for the sewer rate increases also include covering maintenance costs; to maintain a required cash reserve; to fund capital improvements; to refinance an existing debt used to upgrade the sewer plant; and to pay for a $7.6 million bond for more improvements that have been mandated by the Indiana Department of Environmental Management.
The project will include the replacement of undersized pipes and lift station rehabilitation. The $7.6 million bond is from the Indiana Finance Authority and will have an interest rate of 2.11 percent.