Water Rate Increase Information

 

Water Rate Increase Information

Water Wheel
 
The following information was from 2010
As you know, the Town of Speedway is in the midst of an overhaul of its wastewater collection and treatment system, which was discussed at length last fall. 
 
The Town has also created a capital plan for its drinking water system, which, like the wastewater system, faces regulatory and other issues. 
 
 
 
This information is provided so that you can get a better understanding of why the Town is making this investment in the sewer and water infrastructure, and what it means for you.
 

Drinking Water System Upgrades

 

The Town's Drinking Water Department produces about 2.25 million gallons per day, serving 6,600 residential, commercial and industrial customers in and around Speedway.  The water, from both ground (wells) and surface sources (Eagle Creek), is treated for a variety of quality, clarity, and health parameters.  In addition to treatment, the Department oversees the conveyance, storage, metering and processing of drinking water. 

 

Likewise, the Town's drinking water system is facing aging infrastructure and new federal regulations which mandate certain improvements.  The Town's current drinking water infrastructure has been in place for more than 40 years, and has served the Town's residents well.  The department has prepared a 5-year capital plan which details the projects and improvements to keep the utility operating in an efficient and effective manner for years to come.

 

All together, these improvements are estimated at $6.3 million, for which the Town anticipates issuing low-interest bonds through the State Revolving Fund Program.  These improvements are necessary to maintain drinking water quality and quantity for our users, maintain a safe working environment for employees and allow efficient operation of the utility.
 
Information Link:  Improving Drinking Water Quality for information and a better understanding of the need for capital improvements for the Town's drinking water utility.
 
The Drinking Water Department is now ready to move forward with this 5-year plan, which requires that rates be adjusted.  This rate increase would come in two steps- the first a 32% increase effective for consumption used in September and billed in October 2010, and a second increase of 15% likely in April 2010, when the long-term bonds will likely be issued.  Overall, this amounts to an increase of $7.23 per month for 5,000 gallons usage.
 
Information Link:  Assuring Drinking Water Quality: The Cost outlines the costs associated with the drinking water capital plan and provides a comparison with surrounding communities.
 
Information Link:  Town of Speedway Drinking Water Rate Report  for a copy of the water rate report completed by the Town's utility rate consultant, Crowe Horwath.
 
Information Link:  Water Rate Ordinance No. 1170 for a copy of the ordinance which the Speedway Town Council will consider to adopt new rates and charges.
 
Timeline
 
July 12th - First reading and introduction before the Speedway Town Council
 
July 26th -  PUBLIC HEARING:  SPEEDWAY TOWN COUNCIL
The Speedway Town Council will hold a public meeting to get comments from users of both the sewer and water systems on this proposed rate increase.  The Public Hearing will be held at 7:00pm at Speedway Town Hall, 1450 N. Lynhurst.
 
August 9th - Second reading and final Council action
 
Closing
 

We will continue to make every effort to obtain grants, low-interest loans and other revenues to offset the costs of the projects and reduce the impact on rates.  This rate increase will enable the Town to make an important long-term investment in its infrastructure, meet state and federal water quality standards and preserve the environment for future generations.

 

Although it is never a good time to raise sewer or drinking water rates, we have little choice.  If we fail to meet state and federal deadlines, we could face stiff fines and penalties.  Even with these increases, Speedway's utility rates will remain among the lowest in Central Indiana
 
Please call 246-4100 if you have specific questions about the plan.

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