The New Albany Sewer Board met Thursday to discuss a proposed 70 percent increase in sewer rates.
The revenue would go toward bond payments and federally-mandated infrastructure improvements. The sharp rate hike was recommended by consultant John Skomp, who conducted a review of the board’s needs and budget, and says a rate increase is the only way the body can pay its bills.
“The utility is in some dire financial straits, really doesn’t have the ability on its own to go out and borrow more money right now, and it just needs to bring in the money pretty quickly.”
The sewer board will vote on the increase next week. If it passes, the request will go to the city council for approval and could be in effect by May. It would then generate more than half a million dollars per month.
Mayor Doug England says he reluctantly supports the increase.