After the construction bids for the planned upgrade to Greentown’s wastewater treatment plant were opened, the preliminary rate figures had to be reworked. The projected costs prepared by the consulting engineers, Wessler Engineering, were $5,275,000 for construction and contingencies and $1,094,089 for non-construction costs, which totaled $6,369,089. Non construction costs include engineering and legal services. The bids received ranged from $5,146,000 to $6,346,000. Council president, Joyce Higginbottom, explains the increase in bids over original estimates as the result of an increase in similar projects. More cities and towns are doing similar projects, so the companies are not pressed to bid as low as previously. The original estimates were collected during a low point in the economy and companies were needing more work. The cost of materials has also increased. The accounting firm, H. J. Umbaugh, revised the sewage rates necessary to pay for the project with a 20 year bond. Sewage rates are calculated on the amount of water usage. Currently households with a 5/8 - 3/4 inch water line pay a base charge of $6.79 per month plus $18.50 per 1,000 gallons. Those who have wells and only use the town sewage system pay a flat rate of $49.97. The proposed rates are a base charge of $12.29 and $33.50 per 1,000 gallons. Unmetered customers will pay $90.45 per month. The new rates result in an 81% raise. Similar increases will apply to customers using larger water lines. The recently passed $10.00 trash pick-up fee and $1.00 storm water fee will remain the same, as well as water rates.
The proposed rates were introduced in the form of an ordinance at a meeting of the Town Council on Nov. 13, 2012. A public hearing will be held at 7:00 p.m. on Dec. 4, in the Greentown Town Hall.
The project will be financed with a bond.
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