Why have Water and Sewer Bills increased?
Inflation
Inflation average in 2020 was 1.2%
Inflation average in 2021 was 4.7%
Inflation average in 2022 was 8%
The LSRWWD is having the same rise in costs that everyone is experiencing. Costs for pumps, chemicals, filter resins, fuel, etc. have increased.
Additionally, In June 2020 the Indiana Department of Environmental Management (IDEM), imposed a 1 milligram per liter phosphorus discharge limit from our Sewer Plant. There was a 36-month compliance schedule started to meet these requirements by June 1, 2023. LSRWWD engaged Strand Associates to engineer a building and chemical feed system to add to our sewer process to lower the discharge to meet the new IDEM limit. The cost of this building was $516,680. A 5-year loan at 4.29% raises that cost to $574,993. $574,993 divided by 600 homes divided by 60 months is $15.97 per user per month.
In May of 2022 the LSRWWD engaged Sherman, Barber & Mullikin to complete a rate study analysis to evaluate our current and future expenses. The result of the rate study set new LSRWWD water and sewer rates to meet expenses resulting in a 28% increase.