The increases are needed to pay for the city’s long-term control plan as approved and mandated by the Indiana Department of Environmental Management and the United States Environmental Protection Agency. The city is required to complete this plan in keeping with terms of an agreed order. If the city does not do so, it will suffer substantial monetary penalty, according to city attorney Dave Copenhaver.

“We have to borrow $20 million to finish separating our storm and sewage lines, and our sewage plant is almost 40 years old and everything there’s getting worn out. We’ve got to be able to pay back that $20 million,” New Castle Mayor Greg York said.

He also noted that many of the industries and businesses the city is trying to attract require up-to-date utility services, and pointed out that at some point in the future, the city would like to be able to provide water and sanitary sewers for residents and businesses south and west of city limits. With that in mind, Ordinance 3765 also specifies that sewage services provided outside city limits will be subject to an additional charge of 14.5 percent over what customers who reside in city limits pay.

“Our rates are low compared to state averages, and even as we raise our rates we’re still right in the middle,” the mayor said. “If we want to continue to be able to recruit companies, and for people who live here to have good service, we have to be able to keep up with the times. As far as the rate increase, we don’t have any choice. The word option doesn’t even come into play, it’s what we have to do to be able to make ends meet. The state mandated the storm and sewer line separation. They didn’t provide us any money, they just told us to get this done, so we really don’t have any choice but to get it done.”

Council member Mary Pierce-Abbott also wants the citizens of New Castle to know a rate increase is not something the council is happy about.

“None of us on the council wants any increases. It’s something the government is making us do, and if don’t do it it’s going to cost people a lot more money than it is now,” she said. “But, as far as wanting anyone to have to pay a higher bill, none of us here want to do that. We have to.”

In other news from Monday’s council meeting, Ordinance 3764 was passed on second reading. This ordinance authorizes the city to borrow money for the construction of improvements to the sewage and storm water system. The improvements are part of what is commonly referred to as the city’s long-term control plan. The city needs to borrow as much as $25,750,000.

The mayor also shared some dates local residents may want to keep in mind.

The city’s first Broad Street Cruise-In of the year starts at 6 p.m. April 1 and will feature a guest appearance by comedian Donnie Baker of the Bob & Tom Show. Baker is headlining a comedy show later that night at the New Castle Armory.

The city’s annual Easter egg hunt is scheduled for 1 p.m. April 15 in the New Castle High School parking lot.

City parks will officially open for business April 17.

The city will host a community picnic April 22 in Baker Park. This event is still in the planning stages.

The council next meets at 6:30 p.m. March 20 in council chambers on the second floor of the municipal building, 227 N. Main St. This special session is to share information about the upcoming Broad Street construction project and will feature representatives from the Indiana Department of Transportation. The council will then meet at 7 p.m. in regular session. Both meetings are open to all interested persons.