Fall Creek Village Board pass budget, including big increase in water rates

FALL CREEK - The Fall Creek Village Board approved both the 2023 Village Budget and Tax Levy at its November meeting held back on the 14th.

The budget was approved by a 5-1 vote with only Trustee Ryan Aylesworth voting no and the levy was approved by a 5-0 vote.

The Board also dealt with a dramatic increase put forth by the Public Service Commission (PSC) and heled a lengthy discussion on it. The increase is result of a water-rate and usage study conducted by the village earlier in the year last spring and submitted to the PSC which came back to the village with an increase of to be able to cover the costs of managing the system successfully (operations, maintenance and future costs). The PSC’s proposal, spelled out at a special meeting of the board back on Sept. 28, called for a 43 percent rate increase. which for the average residential customer amounts to approximately $17 per month per household. This was due in part to the last water rate increase being over seven years ago and thus the dramatic increase in rates was due to operational and capital costs increasing significantly with costs being more difficult for a smaller municipality to manage as there aren’t as many customers to spread out the costs within the village. Thus many municipalities like to spread such increases per year rather than deal with a dramatic rate hike like Fall Creek is doing now.

Trustee Karen Hurd provided a written statement stating her opposition to the rate increase given high inflation, that funding alternatives are available rather than raising rates such as applying for grants for water projects or increasing costs in another utility service (such as sewage) to lessen the water burden, and the village should appeal the PSC decision, which it has the option to do. She (along with Trustee Matt Mattoon) also expressed surprise the fact the village had to pay for the cost of the study done in-house, which came to several thousand dollars, although there seemed to be some misunderstanding or mis-communication on this point from staff. Village President Timothy Raap stated that the village had to make tough decisions on this matter and by providing this service to the people of Fall Creek they have to do what's necessary to make the service work even if it means increasing costs to do so. To not raise rate means funding for the service would have to come out of the village's general fund which raises the questions of usage and fairness.

"Seven years is a very long time," Raap said. "And yes, people will be upset but we can't afford to do nothing if we're going provide this service.".

Village Administrator Jared McKee said having a separate water fund means it must be self-sufficient and be paid for separately.

A vote was taken to appeal the PSC decision in motion made by Hurd which was defeated by a 4-2 vote. A motion to accept the increase was approved by a 4-2 vote with Hurd and Aylesworth voting no.

In other agenda items the Board unanimously voted to grant a pay request for the Keller Park ballfield; approved the purchase of a fountain with funds donated by Luther Strasburg for the village pond; put out for bid legal services for the Village as they will lose their current provider after legal firm merger; approved the installation of solar lights and wireless radio and computer hook-up for the eagle's nest in Keller Park; gave authorization for the Village to begin work on grant applications; approved bartender's applications, authorize placement of delinquent utility, special charges and special assessments on tax roll; a approved recycling special charge for 2022/payable 2023 tax bill; approved updated Village of Fall Creek Schedule of Fees by a 5-1 vote (Hurd voted no) and the first reading to repeal Ordinance Chapter 254 Water and amend and recreate as Title 8 Water.
and Sewer.

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