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Osgood
Town Council approves water rate
ordinance and loan
Beth
Rumsey
Staff Writer
The
public hearing for the Osgood water rate ordinance was held at
the regular town council meeting on Tuesday, December 21.
According to council president Linda Krinop, the plant was built
in 1979 with the most recent repairs completed in 2005. Currently,
the plant is not in compliance with IDEM regulations and the town
faces daily fines.
Krinop noted that other sources of water were considered, but
that rates would rise considerably. The average user could see
an increase in their bill of 23% or about $4.32 with the new water
rate ordinance.
The revenue from the increased rates will pay for operation costs
as well as a loan from the Department of Rural Development. According
to Krinop, the $2.5 million loan will be repaid over 40 years
with 3% interest.
The rates will increase if the wholesale customers do not renew
their contracts. Currently, the Napoleon Rural Water Development
has a 20-year contract with the Osgood water department. The Holton
water department renews its contract annually.
The board unanimously approved Ordinance 2010-4, the rate ordinance,
as well as the loan agreement with Rural Development and the construction
contracts with Mitchell and Star Company and Holman Excavating.
The revenue bond ordinance, Ordinance 2010-5, was unanimously
approved.
In other business:
The organizational meeting is scheduled for Tuesday, January
4 beginning at 7 p.m.
The employment of John Wagner as a town employee effective
December 3 was unanimously approved.
Clerk-Treasurer Tammy Wilhoit was re-appointed to the Southeast
Indiana Regional Planning Commission. Scott Rinear was appointed
to the Ripley County Planning Commission.
Board members in attendance included Linda Krinop and DeDee Holliday,
with Norman Kappes absent. The next meeting will be on Tuesday,
January 18 beginning at 7 p.m. at the Osgood Town Hall.
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