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HOPE – A consulting firm hired in January to perform rate studies on water and wastewater fees in Hope is recommending the average household pay nearly $22 more a month.
As outlined Tuesday to the Hope Town Council, project consultant Brandon Barthel recommended the water rate for an average 3,000 gallon a month residence rise from $39.84 to $48. Barthel, a representative of Krohn & Associates in Westfield, also recommends wastewater rate jump from $21.97 a month to $35.
During an over one-hour presentation, Barthel listed a variety of reasons for his recommendations that include higher wholesale prices for purchasing water from Eastern Bartholomew Water Corp, a lack of reserves for capital improvements or to cover unexpected costs, increased expenses resulting from inflation, rising personnel costs and long-term debt of $1.2 million.
Hope Utilities is already operating at a loss. The water study shows a 2022 revenue shortfall of $97,893 last year, while wastewater revenue was $149,205 lower than expenses, Barthel said.
Although no formal vote was taken Tuesday, there was a consensus among the five town council members that they had no choice but to raise rates.
The council will meet in a special session to discuss ways to phase in the increases over time. The discussion is scheduled for Tuesday, April 4 at 5:30 a.m. in the council chambers at Hope Town Hall.
For more on this story, see Thursday’s Republic.
