Common Council - Regular Meeting

Okay, we're going to get this meeting called to order. Uh, tonight is December 2nd, 2025. It's 7:05 in the city council chambers for our regular Marian city council meeting. Welcome everybody. And like I said, we'll call the meeting to order and begin with prayer from the Indiana Wesian University men's cross country head coach, Brody Beer. Welcome to the microphone, Brody. Come on up to the microphone and uh press the red button if you just lead us in prayer. Father, thank you so much for the opportunity that it is to to meet here tonight. Uh the verse that's been on my heart uh just to pray over this this city, Grant County, um is just 2 Chronicles 7:14 that if my people who are called by my name will humble themselves and pray and seek my face and turn from their their wicked ways, then then I will heal heal their land. And so God, thank you just for the reminder that it is that there are uh just people here in this county who who love you and who want to submit to you um and who are who are gifted who have been given so many different giftings and talents um in this city to protect our city to educate um just the younger generation of of of people. And I just thank you for the leadership that you've placed here in this town to just steward it well. And so God, I pray that you give them wisdom to just continue to steward just resources well um just as we desire just to seek your face, to turn from our wicked ways. And God, that you will just turn and incline your ear towards us when we do that. And so thank you just for tonight in this space. And I pray that uh yeah, holy holy spirit that you just invade this room. And we love you a lot in Jesus name. Amen.

Thank you. And the pledge of allegiance by council vice president Gary Ford senior to the flag of the United States of America and to the republic for it stands one nation under God indivisible with liberty and justice for all.

All right. Thank you so much um coach and vice President Ford ice. We'll go ahead and call roll call. Madame clerk Kain here. Marshall here. Ford here. Brunner here. Klene here. Divine here. Whitten here. Calgill here. McKinley

here. All right, moving into tonight's community spotlight. The Indiana Western University men's cross country 2025 NIA national champions. I feel like I need to get my announcer voice out for that one. Um just super excited to have him here. Obviously, um coach was the opening prayer. If coach, you could come up to the front and any or all of the cross country runners that were part of that national championship come all the way to the front. Whoever You can be all of you. Part of you. Yeah. What? Whatever. Come on up. We got plenty of room back here. We want to recognize all of you. [applause] Yeah. [applause]

I recognize you. You went to Marion, didn't you? All right. What's your name? Mike. Mike. That's right. Harington. Got a giant alumni in here. Well, welcome to the council chambers, gentlemen. Um, it's so glad to see you all here. Uh, NIA national champions. Uh, that's a pretty good tone and a ringer. You'll always be able to brag about that. So, I just want to um introduce the coach here and make sure coach, what would you like to say about your team?

Yeah, this is uh this has been a team that um just has had two goals since really the year 2000. And those two goals are to grow in grow in faith, grow in relationship with Jesus and seek his face. And this has been a team that um yeah that has been on the pursuit of that that there's no arrival that there's been uh just a lot of guys that have loved one another and continue to just seek his face and also just to pursue excellence. This has been a team that has worked their tails off. We calculated somewhere between 1,200 and 1700 miles that these guys put in over just the summer. Um months of time to to accomplish this goal. This year they went 161 and 0 and so undefeated this season. Um and so when you just think about the teams that we got to compete against um just the hard work that they put in, it's just really impressive. Um this is the fastest team that we've had in school history. We've had records broken and just really thankful for the foundation of you know athletes that have come to Indiana Wesleyan. Uh coaches, Coach Foss, John Foss who was here for 37 years got to help lead and facilitate this team. to make the culture that it is today. And we're just really thankful for what these guys have have done. But, you know, I've been more impressed by just their posture and thankfulness that they recognized that they've been given a gift. And that gift is to to worship and um, you know, this is just a vehicle that, you know, after their four years here, they'll get to go out into the real world, adulthood, and uh, just be lights uh for for the kingdom. So, yeah, just really proud of them.

And maybe serve on city council somewhere, maybe. Yeah. Uh if we could just go around and just state your name and where you're from real quickly. You can start over there. Yeah. I'm from Ohio. I'm from Michigan. I'm Luke Kade. I'm from Indiana. I'm Mike Harrington. I'm from Marvin from Michigan. I'm Hunter Wnik. I'm from Ohio. I'm Josh Bainbridge and I'm from Liberty, North Carolina. I'm Rudy Balor. I'm from Pennsylvania.

Sweet. I'm from Converse, Indiana. Trevor Schwarz, Indiana from Indiana, Ohio. All right. Thank you, gentlemen. Everyone give them a round of applause. [applause] Yeah. [applause] As I as I've said, Indiana Wesleyan is a big part of Marian, right? So, you're at the Marian City Council meeting. Um, we're IW IW is Marin and we're just so glad you chose Indiana Wesleyan and chose Marin Indiana and we're very very proud of you. I think it's your first national championship, right, for cross country for the men's, right? That's uh that's incredible. You can always say we were the first, right? And then next year you could say that was your second, the following your third, right? Okay, just checking just checking your mindset. So anyways, thank you so much. Um, any other council members want to share anything? If not, we'll get a photo. Okay, sounds good. If you guys

I think I think uh what we need to realize they were not uh doing real well that day. Um coach uh did uh did did somebody really step up for you in the second half of that race? [applause] We've been calling him Grant Florida Nationals in Florida. So now he gets the name Grant Florida now.

Gotcha. Yeah, we were in 10th place I believe at the K around there and then yeah, we just continued to move up and um yeah, it was really cool just to see the team just finish strong all the way through and around the seventh K. It's an 8K race which is 4.97 miles. Um at that 7th K we took the lead and I knew going into that last K that if we kept passing people um we would get the victory and so it was cool to see them just finish strong all the way through the finish for the win.

Great. Thank you so much. Thanks for that, Councilman Brunner. Of course, leave it up to Councilman Brunner for a sports commentary. I appreciate that. So, uh, and gentlemen, if you could squeeze in maybe double deck it, we're going to get a photo with all of you and the council here. I can.

All right. Smile. All right, everybody. One, two, three. Let's get this trophy up there. There you go. All right, let's try this again. Okay. All right, let's try this again. Ready? One, two, three.

[applause] [applause] [snorts]

I'll let them clear the room here. Thanks, Dave. Thank you. Appreciate it, doctor.

All right. Tonight, uh, we're gonna feature a special person on the under the city employee spotlight. Um, I will say he's been on the radar for Spotlight for quite some time. We just uh had other people that we wanted to get ahead that were already on the list, but Captain Adam Trexler uh has been on the radar for a while for his accomplishments. um not only at the fire department, but outside of of the fire department. So, Captain, if you want to come on up to the front um all the way, you know the drill, all the way to the front here. So, um Captain Trexler works at station five and uh he's a pretty fit guy if you couldn't tell. And the reason he's pretty fit is one, he has a strong commitment to to working out, but also uh he recently or this year uh has been competing um the official title is a firefighter challenge championship series. Correct.

That is correct. And it's a national competition. That is correct.

Uh that firefighters can men and women can compete in. And I don't even know all the things yet. I saw a couple videos, but uh he actually won rookie of the year for the the entire competition on the men's side, which that's a big big deal. I mean, here from we'll say little old Marin, Indiana, he's representing us very very well on the national stage. I do want to share some comments from Chief Curtis Gar. Uh he said, "Captain Trexler's competition achievements this year are most definitely spot spotlight worthy. It's a testament to his commitment to leadership, hard work, training, diet, and mental toughness. The Maran Fire Department is very proud of Adam and we wish him further success in both competitions and within, uh, Marian Fire Department. That was Chief Gar. So, um, Adam, can you just tell us a little bit of like what all you had to do in that competition? What does that look like?

So, it's it's the same competition every every event. Nothing changes for men or women. You wear your full here wearing your SCBA. Uh you carry up a 42lb highrise pack of five stories. You throw it in a box. Then you hoist up a hose roll which is with the rope and everything about 48 49 pounds. Uh you can skip stairs going up. You can't skip them coming down. Once you come down, you hit 165 pound I beam with a sledgehammer. Um come off that. You sprint down, zigzag through, grab a inch and 3/4 line. Uh once the slack is completely out of it, it weighs about 230 lb. Spray a target and then you pick up 175 lb dummy and drag at 160. Fastest time.

It's impressive. Yeah. So, what was your time? Uh my best time this year was I think it was 146 145. 1 minute and 46. Yep. And believe it or not, there's guys out there that uh 144. Oh, who is that out in the audience? Oh, your wife definitely knows your best time. So that's that's good that you know that. Yeah. Um but yeah, there's guys out there especially because it was a world event, too. So there's national and then a world where everybody all across the world as well. Um a guy put up a Wow. Well, that's good. But

yes, but you uh definitely impressed us with the 144. So So the goal is still under So there's a a prestigious award of called the Lion's Den. If you get it under in my age group under the age of 40, a minute anything under a minute 40, you're inducted into that. So that is my goal. That was my goal. I was real close at nationals. Fell a little short right at the finish line. Uh so we got this year. Are you going to do it again next year and keep going?

Yeah, as long as I can. Love the sport. Just love the atmosphere, the brotherhood, the sisterhood, all that together. It doesn't matter if you're competing next to somebody in the other lane at the end of the race, they want you to they want to see you succeed as well. So, I wish wish that would transition more over to the actual fire service more better. But, uh I feel like me as a leader, I can transition that well uh you're you're setting a great example uh not just physical fitness but mental toughness and uh we really appreciate your service to the city. How long have you been serving on Marian Fire Department? Uh six years.

Six years and your captain. That's great. Uh so just the fact that you're captain shows that you're a leader and I appreciate all you do. Uh we're really looking forward to next year to see you compete. How many competitions will you have next year? I'm for sure doing it four. Worlds is up in the air, but definitely four. Okay. And what kind of expenses are related to that? Like

Yeah. So, you got your entry. You still got to pay the entry. You got travel cost, food, all that. So, it can get expensive. Um this year, uh I just got the phone call before Thanksgiving, which was a pretty good call. Um I'm officially a paid athlete for Lakeland Fire and Safety. Um Um, so they will be providing some financial um, help throughout this coming 26 season. And if somebody wanted to help and contribute to that, how would they go about that?

Uh, we I my wife's got a memo uh, set up for for myself that we've been um, using this year. Uh, this off season we're trying to put something together a little bit more um, like different tiers of sponsorships. still trying to get all that taken care of. Um selling shirts and stuff like that. So that's still in the planning stage. So we're really going to hit that this offse for sure. Well, as soon as you get that, if you mind sharing it, I disseminate that to the council and the public as well and uh try to get the community to rally around you because I mean [snorts] you're you're a representative from Marin and uh we really appreciate that. So yeah, any council members want to share anything?

Yeah, I know Adam pretty well. We we talk a lot. Um that was I was going to touch on that more than anything. Um I think that you know I've seen Mary and pound-for-pound we when it was you know Wayne and Kim going to the Olympics and things like that. We we really get behind our athletes and push and and strive to help them do as good as they can. I really would hope that we could get um some some donations for him to do this. I mean, it's this takes a such a commitment on his part, dieting and exercising, and you know, we probably go to the gym together, but um I just don't have a lot of time for that. But anyway, uh you know, I'm gonna Adam, I'm going to tell I'm going to try to get some corporate sponsors locally as well for you this year and help you out on that because I'm really proud of you, dude. What you're doing is is amazing. Honestly,

I appreciate I love it. That's why I'm doing it. So, I'm not doing it gain any financial or anything. I I absolutely love the sport. So I get to represent my community, my county, everything. Believe it or not, there's a lot of competition. I was the only guy from Indiana competing. Oh wow. Uh Deputy Chief Overmire, are you here? Thought I saw you. There you are. Yeah. Did you want to come up and share anything or pretty much cover? Oh, come on up. Well, I know you were had some prepared remarks. So, I want to give you that opportunity as well.

Is this on? Okay. Uh, my name's Eddie Overmire, Deputy Chief of Maring Fire Department. First off, uh, I would like to say that in my opinion, Marian Fire Department is the best fire department in the state of Indiana. Just wanted to get that on record. But um as a firefighter and member of the Marian Fire Department, it is the duty to serve the community to safeguard and preserve the life and property against the elements of fire and disaster and to maintain a proficiency in the art and science of fire engineering. to showcase professionalism and continually search for new and improved methods and share the knowledge and skills with successors. Safeguarding public's faith and trust. Constantly striving to achieve objectives and ideals of a chosen profession of saving lives and fire prevention and fire suppression. These are the ideals of the Mariam Fire Department firefighter and one of our own Captain Adam Trexler has risen above and beyond our expectations on this. We are so proud of him and his achievements of getting the uh it's called the PJ Bean Rookie of the Year for 202025. So, uh we are absolutely ecstatic that what he's achieved and we look more forward to more uh from him in 2026.

Thank you, Deputy Chief. Appreciate that. Uh any other council members before we get a photo? Just a question. Are you related to Matt?

That would be Matt Trexler. Yeah. Just making sure we make assumptions. Pastor Matt, there you go. How about that? Okay. All right. Well, appreciate you so much. Give him a round of applause. [applause] It's [applause] great to see all your firefighter friends and uh uh fellow firefighters here. if we can get a photo and I'll give him back and you're welcome to have

any other firefighters that want to come up as well. Firefighters coming up.

You guys have seen him before. Stay on the chair. This is really This is making a statement.

Not only Not only are you a badass, you're very well apparent. Yeah, we're good. All right, everybody ready? One, two, three.

Most people ever seen Thank you. Okay,

we'll move on to the consent agenda. The approval of minutes of regular meeting November 18th, 2025, consideration of pre-approved claims and consideration of claims. Any discussion? If not, I'd entertain a motion. Mr. President, I move that we pass the consent agenda. Second. Motion by Councilman Kaine to pass the consent agenda. Second by Councilman Calgill. Any discussion? Madame Clerk, roll call. Kane, I. Marshall. I. For ice. I. Bronner. I. Klene. Yes. Divine. Yes. Whitten. Yes. Calgill. I McKinley.

Yes. Consent agenda's approved. Moving on to committee reports. Yes. Councilman Klene.

Yeah. I'm I just want to get out of the way before the Erica Divine segment. Um and I I indulge me. I'm playing catchup because I had to miss all the November meetings because of a family health issue. And thank you for the kind words and thoughts that you all shared. Anyway, the A Marion A Board of Aviation Commissioners met November 6th and on the fuel farm, it's moving along. The design and construction of the Jet A fuel system, the federal grant agreement of $883,737 has been received and that covers 95% of the total project cost for the Jeda fuel system. The 100 lowled systems street big construction is anticipating opening and removing the 100 lowled tank as early as next month. And um Walpert, the engineering firm that the airport works with, anticipates a pre-construction meeting in December. Now, this is the big news. I thought the aviation academy, they're pursuing a grant for a new education center at the airport. It'll include infrastructure, building construction. The grant is through the economic development administration and it's for up to 20 million. It's being done in a partnership with the airport uh Indiana Wesleyan University and the city and it would add space to teach airplane maintenance, increase uh flight instruction capacity and add a drone program. it would expand the program significantly and next board meeting is this coming Thursday and I'm sure we'll get another update then. Thank you.

Thank you, Councilman Klein and welcome back. Any other committee reports? Councilwoman Divine.

I was waiting to see if anybody else had one. Um, okay. So, board of works met yesterday and they let me get back to the agenda. They are working on an updated um procurement policy for federal grants. So, they had a draft brought before them and had some questions on it. Um, and I think I do have the draft now, so I'll forward that to you guys to look at as well. Um, but they wanted to have some basic guidelines for bidding and approving specifically uh grant funds as they came in. Um, I think that something formal had to be in place with some of the changes going on with with all the government oversightes and and so on. Um, I also wanted to uh just mention that hopefully everyone will say a quick prayer for uh Fred Co who is on the board of works. I understand he's in poor health today. So, just make sure everybody keeps him in your thoughts and prayers. Um, the utilities board met two weeks ago, the week before Thanksgiving. Um, and they had some on their agenda talking about a variety of different um, contracts and bids that they were doing. The most specific one was regarding their healthcare. they had their healthcare renewal. Um they were able to negotiate down to about a 20% increase over last year. Um the there was a couple of customer requests. Um and then they also approved the 2026 budget which I believe they'll no they

okay they reviewed the budget and then we'll approve it this week at their meeting. Um and the main increases was due to insurance and then they had a cost of living salary increase in there. um they opened bids for the lime chemicals and there was a conversation that I'm going to do some research on and get some more information that had to do with um taxes on overtime and some of it not uh not having that you could deduct it that's not FSLA overtime and I hadn't heard that so I'm going to do a little more research on that as Well, um and then they started having conversations about the contract on the landfill because that 10-year contract is coming up um to an end. Then we had two public works committee meetings. One last week that was on the uh proposed ordinance for alley paving um and the requirements on that. Uh the committee met and there was some good discussion from other individuals that also attended. Um conversations came up about the difference between rolled asphalt and unrolled asphalt, what the process was between aggregate comp compacting. Um the we were looking at a redline version um that was preventing the city from stepping backwards on alleys to um require that they be paved going forward at least for all new construction. Um and then requiring a plan to be created going forward to get them all up to paving standards. Um, and then there was a whole lot of

discussion about the difference in repairs and patches. And so essentially we needed more information that's been sent on uh with some comments to be reviewed by other individuals within the city. And then we'll have another meeting to go over those changes and comments and see if we can't come up with a an ordinance that that covers all those things. And then tonight we had a public works committee meeting. Um it was livereamed on YouTube if you were unable to be here uh regarding the proposed request from the util utilities on um sending out a request to the IURC for the rate um review for a possible increase. And they are they're still here tonight. We do have the public hearing coming up. Um so the um Jennifer Wilson with Crow is going to go over uh the presentation some of that again with some of the questions that we had. Um and then we'll have the public hearing and the committee decided to just send it back to council with no recommendation but for us to consider further.

Great. Thank you for that. Any other committee reports? Okay, we'll move on to unfinished business. General Ordinance 30-2025 amending monthly water user rates. Second reading and public hearing. An ordinance amending the monthly water user rates and charges for the city of Marian, Indiana. introducing an ordinance to adopt water rates and charges sufficient to support the utilities ongoing revenue requirements and obligations under Indiana Code 8-1.5-3-8. Speaking Robin Schrader, director of Marion Utilities.

Good evening and welcome.

Thank you for allowing us back tonight. A few years ago, Marian Utilities approached the city council with a request to petition the IURC for a water rate increase. Given that it had been 17 years since the rates had been adjusted previously, the case was relatively easy to make. The result, as you know, was a gradual raise, a gradual was to gradually raise the rate over a period of five phases while simultaneously changing the rate structure from one that made water considerably cheaper for our largest users to one that leveled the playing field. In fact, our most frugal customers likely saw a decrease at the beginning of this process. Despite these efforts, though, our financial situation within the water utility has not effectively improved. It's true that our revenue has increased somewhat, but not enough to keep pace with our operating expenses and debt service. And as yet, we have still not been able to even consider rebuilding our depreciation reserve for capital improvements. Earlier this fall, the wastewater utility loaned the water utility $1.8 million in order to continue meeting our min minimum monthly operating balance. However, this is very much a temporary solution as those funds will soon be needed to continue pursuing our long-term control plan mandates as prescribed by the Indiana Department of Environmental Management. So, once again, we turn to our financial consultants at Crow to re-evaluate our circumstances and provide us with conclusions and recommendations. Additionally, we run the risk of being penalized with a rate decrease by the IURC for our failure to secure additional bond funding by the end of 2025, which we cannot currently afford. This was a stipulation of the rate agreement in in 2023. Given that we showed a deficit of $1.6 million for the 12-month period ending June of 2025, we're left in an

impossible position. For these reasons, we asked the city council to consider approving an ordinance that would allow us to petition the IURC for a rate increase of 44.24% above the already approved 2026 rates. Jennifer Wilson from Crow will share about the financial evaluation process here in a moment, what the IURC looks at and the precise numbers. But to summarize the real customer impact, here are three things you should note. First, this proposal does include consideration for pilot, which would result in our ability to contribute almost $265,000 annually to the city's budget. Second, our need for a rate increase is completely independent of any type of economic prospects which may be looming on the horizon. We've been drawing down our reserves for 10 years and have a long way to go to get caught back up. And third, most of our residential customers use between three and four units of water each month. That's between 20 and $25 according to the 2026 rate. The proposed change would mean an increase of $6 to eight dollar a month. So the equivalent of a gourmet coffee drink or an extra value meal once a month. So that's the cliffnotes version and um I'll turn it over now to Jennifer Wilson and she'll run through the her full financial analysis presentation.

Thank you. Welcome, Jennifer. We'll um run through that presentation um fairly go a little bit quicker just because we do want to get to that public hearing and then we can come back for more questions and and presentation. Does that sound good? That sounds good. You want me to put it on the big screen again? Yes, please.

All right. Let me grab my Very good. So, as as Robin said, we did a rate report and we looked at the historical financial information. We compared our test year of June 30th, 2025 to December 31st 24 and 2023. Looked through all the financials. We developed a test year and made adjustments to that test year for fixed known and measurable items that we saw were coming up in 2026. And we comp piled all that together to create the revenue requirements which includes your operation and maintenance, your taxes other than income taxes, your debt service, your debt service fun reserve funding, your bal building up the operating fund, you're paying back the operating loan or sorry pay back the loan from the sewage works and also have monies for annual capital improvements. As Robin said, there's two components to the rate increase. We had already gone in front of the IURC and you have a rate increase that's a fivephase rate increase. In January of 2026, you'll be in the third phase of it. And what we're recommending is to pull forward the phases four and five that were to occur in 2027 and 2028 and have them occur immediately uh upon um approval from the commission. And then an additional approximately 25% over and above that uh already approved rate increase. that's going to be uh occurring in the future. We would request that that all happens upon approval from the IURC. Some income statement highlights. The

numbers over to the left are the year 2023 and that is when you saw the first phase of the rate increase that happened in October of 2023. Your revenues came in at 4 and a4 million, but your expenses for operating expenses and debt service were 5 million. So that's a deficit of $830,000 that you basically used your cash to pay for those expenses in that year. In 2024, your revenues did increase because you had a full year of the rate increase implemented. And so it got closer. you were at 4.7 million of revenues, but your expenses were closer to 5 million. So that was a deficit of $260 million, sorry, $260,000. And so thus, you then again uh reduce down your balances for that for our test year ending June 30th of 2025. That also includes an increase that happened or that continues the increase that happened in 2025. And we saw 4 point just under just under $5 million, but your expenses increase to $5,350,000. So, you're continuing to decline and are not able to gain that you have more revenues than expenses for just operating and for debt service. This does not count any capital items that you would have paid for out of revenues. So, you're basically depleting your balances. So, we looked at the test year ending June 30th of 2025 and looked at what was coming up here for 2026. And 2020, our test year, it was $5.2 million as your operating expenses and taxes. We're proposing an increase of approximately $830,000 up to just over $6 million. That $830,000 includes [clears throat]

a 265 Excuse me. $265,000 payment in lie of taxes that would be paid to the city. It also increases salaries and wages and benefits by approximately $120,000. Includes a bad debt expense of $130,000. Contractual expenses are going up by $160,000. Rate case expense of $70,000 and purchase power is increasing by $40,000. Insurance also rounds that out to 800 for the $832,000 of $50,000 increase over the test year. Now, the reason why we're needing a rate increase now is when we went through the rate process before your operation and maintenance and taxes was just under $4 million in our proforma 2026 expenses, it will increase to just above $6 million. So, a $2 million increase. What that $2 million comprise of between our test year of March of 2022 to our proform year of year end 2026 is salaries and wages and benefits increased by 740,000. Contractual expenses increased by 300. Materials and supplies increased by 200,000. We're including that pilot which has not been paid before of 265,000. insurance increases by 140, chemical by 127,000, bad debt of 128, and the rate cases expense of 70. So overall, $2 million increase in operation maintenance from our prior case to the current case. Now, I like looking at this screen because it shows your adjusted operation and maintenance on the percentages of where those operation, maintenance, and taxes are going towards. So your

employee costs are about 47%. And in our break from the previous presentation to now, I looked at some other communities and typically the employee cost ranges from 40% to 60% for other communities that I've worked with. Your second largest cost is contractual service at 16% and chemicals at 12%. Now, you did benefit a few years ago when you got the state revolving fund loan. And so, we had gone in with the case that we thought your debt service was going to be about $930,000, but you received about 3.5 million in in benefits financing from the state revolving fund loan program. So, your actual debt service after you funded all your debt service reserve is about $250,000 less than what was projected in the case before. So that was a benefit that you guys got a reduced debt service, but you don't get to capitalize upon it because they expect you to true up that rate. So if we don't go forward with a rate increase, we actually will see a rate decrease even though you need more money for operating and that was just part of the settlement negotiations that were made when we went through the IURC the last case. So overall, this shows your revenue requirements that your operation and maintenance is the large blue item. We also have taxes other than income taxes. You have your 2024 debt service. You're funding your debt service reserve. You're going to pay back the loan to the sewage works and you're going to build up your operating fund balance. And there will also be some monies for ongoing extensions and replacements at the level of your depreciation expense. I know there's a small numbers here, but what we're trying to show here is what you had put in your previous rate order. You had you did a cost of service study

last time where you basically reduced all your rate blocks down to one rate. So, we're proposing that your increase your increase for 2026, your phase three is going in. we uh uh accelerate the 2027 and 2028 increases so that your flow charge will be $5.50 per 100 cubic feet. Your monthly customer charge will see be $745 and your and your 58 and 34 inch customers will pay $510 for a fire protection charge. [cough and clears throat] So on the typical monthly bill analysis that you see on the next page, as Robin said, currently as of 2025, [clears throat] the the 300 cubic feet users are using are charged $20. It will go up automatically on January 1st by $1.13. And we're proposing that it goes up by another $8.37 as just an example. Thank you. Moment here. Okay. Any council members want to have a discussion prior to public hearing or would you like to go to public hearing?

I had just a couple clarifying questions real quick. So the test year is 12 months. So it was June 30th of 24 to June 30th of 25. Uh July 1st of 24 to June 30th of 2025. Yes. Okay. And then um the overall numbers we were looking at were from March 22nd to January 26. Yeah. So that previous test year would have been April 1st of 2022. No, sorry, April 1st of 2021 to March 31st of 2022.

Okay. So those total amount of increases, the 2 million, yes, is over a period of four years. Correct. Okay. And then the total revenue that you had projected on the um on the slide showed at 8 million is that that's at the end of this rate increase that we're asking for. Correct. That that amount will cover up to basically $ 8.2 million. That's your total revenue requirements of all your expenses and then your revenue would equal your total expenses. Okay? But that would not be But that's the additional 24.

That includes the additional Okay. almost 25% increase. Yes. Okay. Okay. Yep. Thank you.

Any other questions before we go to public hearing? Maybe I'm oversimplifying, but if this doesn't happen, then the regulators likely or will tell you cut your rates even though you're hurting already. According to you guys,

yes, according to our settlement agreement, we're supposed to file a new tariff um after we true up the debt service that did not occur in 2025. So, we would need to make a report, excuse [clears throat] me, to the regulators that we did not issue that debt and according to that settlement, they could decrease our rates um for that $250,000 decrease that we did not uh take on. How much might they reduce them? And then what effect does that have on doing business?

I don't know that overall percentage. I just know it's a $250,000 difference. So basically, we would have to cut another $250,000 because you have depleted all the cash balances at the utility and they give you how long to make those cuts. Um the the rate tariff would need to be in effect of we would need to work with the regulators immediately. Immediately.

I have a question off of that. Who negotiated this into I mean this is insanity. Who would have negotiate uh you know what if we don't do this we'll take a rate decrease. What where does this come from? Who who advised for this to happen?

Right. So the I explained the IURC process. Usually if it's a fully litigated case it might go 10 to 12 months. So a lot of times a utility if there's a lot not not a lot of um fighting back and forth between the utility and the OUCC about what that might be will come to an agreement or a settlement and generally to get rates in place so that the cash will increase immediately for the utility that's already been waiting eight nine months to get that into place will generally will agree to the terms that the OUCC will put out. So whose idea was this to was it their idea? I'm just trying to understand the the reasoning behind this.

So basically the OUCC came back and said we'll accept your rate increase but we want you to true up and we want this one line item to if you don't make that line item, you will decrease your rates. So, is is the logic behind it from their point of view that we're allowing you to increase rates based on the information you give us, but if the information you give us doesn't pan out and you don't and your finances aren't managed or you you run out of money, then essentially we think you didn't really need this and we're going to make you lower your rate. I don't I'm trying to understand the logic behind that.

Let me let me add one little piece to this. So the amount of the loan that we agreed to with the 2023 settlement was based on engineers estimates for five projects simultaneous simultaneously. The bids for those five simultaneous projects came in below what we anticipated. So that's what created that discrepancy in what we thought we needed versus what actually happened. and we didn't have a way to predict that beforehand because we had to wait until after all those funding things were approved before we could have the bids.

So they're saying because the bids came in lower somewhere they negotiated that if you don't need this money then you will need to lower your rate. Correct. Is that correct? They were basically doing a oneline item. let's true up this one line item and taking instead of taking you holistically and that is something that uh we argue with the OUCC but again in order to settle and move the C case along and get your revenue started as soon as possible we agreed to the term of what they proposed

okay it's making more sense I understand their position then they're basically trying to protect the users to say don't overcharge them. Since your bids came in lower, if X, Y, and Z doesn't happen, you have to lower the rates. However, now you're saying the conditions have changed in other areas, it's now requiring us to consider increasing the rate, which is separate from the issue of which why they would lower the rate. It's it's it's something separate. Am I following here? That is correct. Yeah.

Okay. Okay. It answers that question. Thank you. other council members before we go to public hearing. We'll go ahead and go to public hearing. We'll open it up right now. If you'd like to speak on the this general ordinance 30-2025, you're welcome to make your way to the microphone. Good evening. If you could just state your name and your address,

I just want to say sitting here not having a real good hearing and not real good eyesight, I really couldn't understand 99% of what was presented. All right, there should be something in writing that we can look at and we can observe and and to study whenever it comes to these kind of things. Another thing, [clears throat] when I hear 46% of my water bill is going to go up, that's quite a bit. But then I understand, am I not correct? That is just the water we use.

So all that's not if I have a $100 water bill now, it's not going to go $146. All right, that makes a little bit clearer to me. And I think if we left it without that, some people would say, "Hey, my water bill is going to go up 46% and that's way too much." So, uh, as far as raising rates, we all need more expenses because everybody charges more. All right? Regardless of what we do, uh, labor goes up, expenses goes up, electric bill goes up, the gas bill goes up. So, I can understand the situation there and all the legal technicalities that you brought up um didn't mean anything to me, but I will say that I would approve of what goes on. Thank you.

Thank you. Microphone's still open if you'd like to speak.

All right. I am not seeing anyone else make their way to the microphone. Last chance. Okay, we'll close the public hearing. Any council members with further questions, discussion, comment. I will make a just a clarification. We did have about an hour and 40 minute committee meeting prior to this that we went into a lot of detail. Members of the public, you're welcome to watch it. It was streamed on YouTube. It's recorded on YouTube. Um there was a lot we dug into a lot more detail and you're welcome to watch that um to get more information as well. I appreciate both of them being here that whole time and answering a lot of questions and we really dug in deep and and try to simplify some of the questions and answers and um understanding where this at. At the end of the day, uh we're the elected officials, the only elected officials that have any oversight over the utilities. And so it lies within us. And so, uh, I do believe we we have a a duty to to vet any requests for rate increases. That that is our fiduciary responsibility. And, um, so any question about this is a good question because if one of us is thinking it, that means other people are as well. So, any council members with other questions or clarifications? I know we had some questions during committee meeting where we're going to hopefully get some more answers from um any other council members.

Um question the questions we had for you the information we said we wanted. Can we get that by the next meeting? So, if this goes to third reading or do we is is it wiser to send it back to committee? Can you get us that information in time?

That information should be pretty easy to come by. But in reality, um you know, the the financial uh reporting for the utility has always been public information and has been distributed. So, it's actually already out there, but we're happy to compile that and and can put that together pretty quickly. So if we still have phase three which is starting January 1 and then four technically is January 1 of 27 and five January 1 of 28. if this did not get approved, those rates are going to still go up. Um, so would they not, say we didn't approve something or they didn't think it was necessary, would they do a rate adjustment as soon as 26 and those phased in amounts would be different or would those still be going up in those amounts and we'd see a change in 28? There we go. Um, so what our request is going to be is to vacate that phase uh four and five and not do those two phases and instead basically pull everything to increasing the rates as soon as we get an order here in 2026. So phase three is going into effect and then the overall combination of what we'd already had plus an additional 25% would be requested to start um as and if it's goes like the last case we filed a case in January you have rates in place by October so it would be later on in the year of 2026

but if we don't say we don't agree to doing the rate study then it's status quo. It stays at the next three phases. Correct. If you don't do well, other than the fact that we would need to report to them that we did not do that debt and so it could be possibility that the rate would actually go down by 250 thou two the revenues would go down by additional $250,000. So potentially the phase four and five could be a little bit less. Correct. Because we'd have to account for that decrease. Yes. decrease, which is a very tiny percentage of your overall revenue. So, we're not talking a ton to do a true F.

Do we have kind of that? I just curious, do we have that percentage as to what that would be? I don't have that. I don't do that number in my head very well, but yes, but basically, yes. Instead of um our overall increase uh revenues, it would need to decrease by $250,000 out of our what I'm I think it's 4.4 4 million that we're bringing in about now.

Okay. But if we do agree to do the rate study, then like you said, we're then forfeiting phase four and five in the hopes that they'll come back with the increased amount, but they could come back with just what rate they could come back with any amount up to that maximum amount. So, in theory, we could be asking them to do this review and they could come back and tell us, "Nope, you're still good with the original percentage that's left. I mean, I I based on the numbers, I'm not seeing that, but I'm just trying to think of of possibilities." Um,

I don't know if that even made sense the way I said that. It did make sense, but I mean, yes, we would be going in with our testimony of describing all the operating expenses and where they are and where they're at at $6 million. And we would be describing what happened with the debt, how you received the benefit of having debt service actually go down. So, our our revenue requirement lines have changed from the last case. What we wanted to still accomplish was getting your cost of service study which was implemented in the last case which where you were getting rid of your declining rate blocks and going to one block. So that's why we're asking to accelerate what's already happened. So you don't need to redo that cost of service study. Accelerate it to the point where you had a full cost of service study implemented what we agreed to in the last case. And we also need additional funds.

A question. Uh so during the committee meeting we kind of got into about the salaries and wages the 740,000. Then you came back and said no that's not correct and you gave me a different number. But just now back through the presentation you said materials increase 200,000 insurance 140,000 wages and salary 740,000. When you said insurance 140,000 what insurance? Health insurance because then the committee meeting you'd said that the health insurance is factored into the 740,000 number as well. that that's probably your general liability insurance that has gone up.

It's gone up 140,000 between the prior case and this case in four years. What are we spending annually on liability insurance? I would need to get that data for you. I don't have the exact number. And who's the carrier? Do we do we know the carrier? Liberty Mutual. Liberty Mutual. Has that been shopped around? and they're still the most competitive rate after 140,000 increase.

The year for that is a little bit different. It's not January to December. U it's a spring situation. And so we're Yes, we can we continuously look at that, but we're not at the right time of year to to be looking currently, if that makes sense. Um what is the for general liability? Is that just is that for repairs or is that just liability people coming on the property? Does that include workers comp? What does that all include? Buildings, vehicles, um the facility itself, um all of our structures and and rolling stock. It's quite a bit.

Okay. But back to the wages and salaries, the 740,000 you said just a moment ago during the committee meeting. You said 740, but then corrected it and changed it. But then now you just said 740,000 again for the increase for wages and salaries. So I'm Yes. trying to figure out where this number really is. Right. I wrote down 742 is the increase in salaries and wages on my notes for from last year to this year for describing between what happened in the prior rate case. So what's happened in four years is pri is salaries and wages and benefits has increased by $742,000. Four years. In four years.

In four years. In four years. Did we hire additional people or is this just um raises?

Well, it's raises, but it's also benefits. So, it's also the health insurance going up, the FICA going up, the PEF going up. So, as you increase wages, your PEF will also go up by 11.2%. your FICA will go up by 7.65%. So for each dollar an increase that someone gets in in wages, you're actually going up by what a$120 for at least benefits just PEF and for FICA. And then you add on to that any increases with health insurance over and above that. And um the fire protection charge, where does that money go that's collected?

Right. So when they did the cost of service study, they identified what it cost to actually provide fire protection services through the hydrants and servicing of those hydrants and other items that are in allocated costs for fire protection. And then they divided it by the total number of users of your community and came up with the charge of what that fire protection charge is. And then it's a graduated amount going up based on what size meter it is. Great. Thank you.

Uh, this may be a question for Robin. Um, I'm still getting stuck on the projection. So, from 2023, the council at the time, I wasn't on at the time, so I can't speak to that, approved the steady rate increase. The projections and the advice came from where for that rate increase?

Our financial adviserss at Crow and also Stantech who who did the uh the rest of that study for us who handles the finances and the books for the water utilities. Well, we have our accounting uh specialist coordinator at the plant and then Jennifer Wilson works closely with her on a regular basis. When was the last time the water utility had a balanced budget or a balanced books at the end of the year?

When we put together the budgets on an annual basis, um what we try to do is zero those budgets. And what I mean by that is um if if our expenses our projected expenses are $5 million just say that for example and our revenue is coming in at four and a half then that additional half million dollars would need to come out of our cash reserves and that's the process by which we have depleted the cash reserves over the course of the last 10 years.

But I mean should all reconcile though right at the end of the year? Well, yes, and it and it does except that it's it's continuing to reduce those cash reserves. And in some instances, it's reducing cash reserves more than what we anticipated because expenses were more than what we anticipated

or specifically. So, you know, I know there's an audit done every other city gets an audit, utilities gets an audit. I mean, I've been on the council two years and the two years I've been here, the audit comes back that the books aren't even or balanced. So, how long has it been since they've been balanced? So, there's been a discrepancy. Um, Jennifer might be able to speak to this a little bit better. Okay. Thank you.

Yes, there's a difference between in your bank wreck versus the cash fund balances. And that's happened basically since you adopted the the latest um billing program um in 2015. So there has been accumulation since for the past 10 years of unable to locate the differential that happened between what was uh the cash versus what was put in the bank because of the differentials that are happening in the background in the billing program. Since Tiffany take Snyder has taken over in 2021, she has been able to identify and reduce that so that when at the end of each month it might be off by $200 and we can't find that 200, she can't find that $200, but then the next month is up by $200. So, she has been able to locate and reduce down the differential while she's been the bookkeeper.

Do you find this same issue other places, other utilities? It just seems odd. I'm not placing blame anywhere. I'm just to entrust the data. That's why we balance it. And that's why every year that the audit's done, it's you get dinged or whatever you [snorts] the terminology would be. It's not looked upon favorably. So, what do is this a common thing? I just know are we an anomaly or is this pretty normal? What I think happened is that uh you made it to 2021 and things hadn't really been reconciled. And so then when Tiffany took over, there was a a large adjustment or unreconciled difference. And without going back from scrubbing it from the very beginning when this billing system went into effect in 2020 2015 to now, um it and it's very hard to find. It's like three cents off with a customer. you can't and so then you it's very hard to find what's happening in the machinations in the computer in the background. It's very difficult to find. So, it's been great that she's been able to reconcile it to the point where it's a minimal amount. Most utilities will then write off that $200 difference on a monthly basis, but we're talking about a 10-year accumulation of small amounts. So, now it's a large amount. [clears throat]

Okay. So then my next question would be where has the board been this entire time? I mean the board is essentially the oversight of utilities. So maybe it's a very high question that maybe no one can answer in here, but where's the board been this entire time with the oversight? We the council appoints two people to the board, the mayor appoints people to the board. there's a responsibility and then and I know you've just been in this position a short time. Um but is does the board have responsibility to oversee this? Just trying to figure out where how do we fix this because it's been an issue since I got on the council. It's been talked about a lot. We're coming, you know, we're we're looking at a I'll call it's a substantial rate increase even though it's only six to eight dollars, but percentage wise it's pretty large. And to some people $6 to8 is pretty hefty. Um, but I'm just trying to understand where's where is the oversight? Has this been brought to the board? Where has it fallen through the cracks that this has not been corrected in 10 years?

Well, I don't know that it's fallen through the cracks. I think that there has been a lot of discussion specifically about this issue with the the reconciliation problem. Um, we've talked quite a bit with state board of accounts about this as well and it largely has been a software complication, not not a misuse of funds. So, there's a there's a big difference there between a software glitch and a misuse or a misappropriation of funds. Um, state board of accounts has complimented us on every other front for the way that we've maintained things. So, in that sense, um, we've we've done that. Um, essentially, you know, the the board has participated as much as they've had an opportunity to participate. Um, what what's been shared with them, they have handled and they have dealt with. Um, there have been a handful of folks who have specifically asked a lot of questions and the way that those questions have been answered that, you know, the matters kind of have been settled and moved on from. So, that's what I've witnessed as assistant director. And then over the course of this last year, we've been working on trying to get some things uh shored up a little bit. We do have a plan in place to adjust our billing accounting software going forward in 2026. Uh we have a company identified that we're going to move to such that um the accounting problem should stop at that point. Um that's this company is much more capable of handling utilities much like ourselves where we've got one umbrella covering four separate entities at the same time. answer my next question or I would have said it sounds like you need to change software. So, um I'm not trying to put blame anywhere. I'm just trying to figure it out. I mean, we're we get asked these questions as council members, so I'm relaying that um to you as well. So, um that's all I have. Any other council members?

Vice President Ford?

I think I think uh and also that uh like um Robin uh spoke on. There are a lot of extenduating circumstances also like the the huge main break on Kim Road which wasn't expected and there's been other extinu extenuating circumstances on on mandates by the state and IDM that um have come to fruition and and um they have had to use uh cash reserves. So, um I applaud you for uh bringing this to us and getting it straightened out and hopefully that uh we can continue down the road without having to every single year or every few years creating more of a problem and we can build up our our operating capital and our reserves to the point to where we don't have to keep doing this. Um, I know a lot of it was mandated and then there was some stuff that wasn't expected at all, like the main breaks that and there's several other uh situations around town where that's happened also that were unexpected.

Yeah. I mean, you can't go 10 years without maintaining a system without capital improvement projects and and then not have problems begin to happen after that. And so, um, on on that front, we're kind of fighting uh against time. Sure.

So, I just I appreciate you bringing this to us and and remedying the problem and and realizing that that we do have an issue. Um I appreciate the water and the service that you guys do and I know that the rest of the city and constituents do. So, uh hopefully we can move forward on this and correct it. Thank you. other council members. So, I know there were some questions asked during the committee meeting, some answers that I think some data we need. Um, so if we could get that to us within the next week, would that be possible? Okay, Councilman Marshall. Oh, I thought you raised your hand. Sorry. Uh well, we could either take this to third reading. Well, I guess we we could either we could take it at third reading either way unless other council mean council members also want to send it to committee again to have a further discussion before the third reading. Any consensus on that? Any thoughts?

Well, for sure we're going to send a third reading. I'm just saying uh you know, as long as the council wants to go to third reading. But do we want to send it to committee again or just go to third reading? Anyone have a preference either way? I would think as long as they would get that information to us as as before the third meeting I I think that that would be sufficient for me as what I would request.

So if we can get the information that'd be great. any of the council members with any disagreement or I will say if we can get the data great. If we can't get the data by the third reading then at the third reading then I would request that we uh you know um move it to the next meeting and send to committee. So essentially go to a third reading so long as we get the data and we have the discussion it could potentially end that day but um we could always um table it third reading to another meeting if we don't have the right information in time. You accept you accept a motion.

I do um I move what is this general ordinance 30 2025 I move we pass it along to third reading. Second a motion to pass general ordinance 31- I'm sorry, correction 30-2025 to third reading by Councilman Klein, second by Vice President Ford. Any other discussion? Madame Clerk, roll call. Kane, I. Marshall, I. Ford, I. Brunner, I. Klene, yes. Divine. Yes. Whitten. Yes. Calgill. Hi McKinley.

Yes, this will move on to a third reading at the next city council meeting and we look forward to getting that data ahead of time so we have time to evaluate it and have further discussion at the next meeting. Moving on to new business general ordinance 31-2025 ordinance amending order of business first reading. An ordinance of the Maran Common Council amending order of business on the Maran City Council agenda. The purpose of this ordinance is to consolidate the community spotlight and city employee spotlight on the council agenda down to just recognition-potlight. Speaking Nick McKinley, council president.

Thank you, Madame Clerk. Uh yes, I brought this to the council. It's pretty cut and dry. Uh the purpose we've been doing two spotlights which is great. Um just wanted to say I think it'd be good to go down to just a spotlight. One to help cut with meeting time. Um but also, you know, sometimes there's it's not always easy to get a community spotlight or a city employee spotlight. So if we just do spotlight, we can use it for any category. Also, and I said this in my email, you know, we could probably finagle this under one of the categories, but I think it would be um I would love for the council to spotlight dispatchers um city uh utility employees as well uh under just spotlight because technically are they city employees? No, they're not community. Um so just yeah that's why just going down to one spotlight um on the agenda. That's my purpose. That's my reason. Anyone with questions?

If you're ready for a motion, Mr. President. I move that we pass general ordinance number 31205 to a second reading and public hearing. Second. Uh motion to pass general ordinance 312025 to second reading public hearing by Councilman Kaine. A second by Councilman Brunner. Any other discussion? Madam clerk, roll call. Kane, I. Marshall, I. For ice, I. Brunner. I. Klene, yes. Divine. Yes. Whitten. Yes. Calgill. I. Mckenley.

Yes. Agenda ordinance 3120 2025. We'll go to second reading public hearing at the next council meeting. And moving into announcements, uh the walkway of lights family night December 12th, 2025 from 7 to 9:00 p.m. And also the Maring Common Council uh still accepting resumes for the attorney position um and cover letters. As for clarity, uh Mr. Harker has not resigned. It's just on an annual basis. We open it up for the public uh every year. We have received one resume uh so far and that it closes December 5th at noon and this is for the entire 2026 year. So any resumes and cover letters need to be in by this Friday at noon to the city clerk's office. You can drop it off there or email it. Uh you can even email it to council president city of maran.in.gov. of and then also Mike Graph asked me to make this announcement as well. Let me pull it up. Um, so there's a two-way traffic public hearing Wednesday, December 10th at 6 PM right here in the council chambers. It says, "The city of Marion invites you to hear the vision for converting Washington and Adam Street as well as First Street from oneway to two-way beginning downtown." They're just wanting public input. They encourage public input at this meeting. And so again, that's Wednesday, December 10th at 6 PM. I can tell you the redevelopment commission uh did commission a study for downtown to look at one way versus two-way. This kind of goes back to our discussion on the council about that second street um street changes. That's what kind of prompted that discussion. And um and so that's this is part of that process that the redevelopment commission has uh

commissioned to be studied on do we convert some or all so the streets downtown to two-way obviously 18 that's the state highway we can't touch that but everything else is being looked at it and any other announcements from council members December 10th at 6 pm yes December Wednesday December 10th 6 pm right here in the council chambers Uh, I think the consultants, whoever was hired is hosting that, so it's not not a council meeting. Um, but they encourage you to come in and provide input. Any other announcements? I'll take a motion to adjourn. I move that we adjourn. Second.

Motion to adjourn by Councilman Kane, a second by Councilman Klein. Any discussion? Madame Clerk, roll call. Kane, I. Marshall, I. Ford Eyes. Hi. Runner. I. Klein. Yes. Divine. Yes. Whitten. Yes. Calgill. I McKinley. Uh, yes. Meetings adjourned. Thank you everyone for coming.