- May 4, 2023

May 3, 2023 - Council Meeting

Town of Wolcott Council Meeting

May 3,2023

6:00 p.m.

Town Hall Council Room

101 W North St.

Present:

Cameron Emond, Jerry Lietz, Darwin Miller, Rex Pearson, Michael Johnson, Pamela Bennett,

Jacob Ahler, George Matthew, Janet Gross, Jeff Rowe, Farrell Brown, Mark Bachman, Harry Kidwell

Walt Owens, Janell Hoffstetter, Jared Baer and JR Northcutt.

Opened with the Pledge of Allegiance to the Flag

Approve minutes or memoranda of the following meetings: April 18,2023. Council Member Michael Johnson made the motion to approve the minutes. Council Member Darwin Miller seconded the motion. Motion carried 4-0

1. Department Heads reports:

Jeff Province: Wastewater/Stormwater-No Report

Robert Thomas: Water/Street-No report

Marshal Baer: Town Marshal- Introduced our new Deputy Marshal JR Northcutt. Presented a Golf Cart agreement to be turned into an ordinance. Grass ordinance is being sited this week.

Lori Bussell: Park Board-No Report

Steve Young Sr: Ambulance Director-No Report

Kenneth Burns: Volunteer Fire Department-No report

Sandy Miller- RWCDC-No Report

Janell Hofstetter KIRPC-No Report

Michael J Johnson: WCEDC-Working on a replacement for Randy Mitchell

Jerry Lietz: Area Plan Committee- Most Counties only allow 3% of the farming ground to be used for windmills. White County is at 6%

Michelle Earney: Summer Festival Committee- Working in Excise for the beer garden at the festival.

Marilyn Maxwell: Main St Committee- Council Member Darwin Miller gave the report. Main St partnered with the Anson Wolcott Society to have Johnny Appleseed come and talk with fourth grade students. Each student was given an apple after the presentation. The program was a very good success.

Jacob Ahler: Town Attorney- Jacob presented the Witco tax abatement to the Council. He was also asked about a TIF district. He said he doesn’t know enough about TIF to comment but will get us a hold someone who can. Council President Cameron Emond asked what it would take to Annex in West of town. Jacob was going to look into everything.

Pamela Bennett: Clerk-Treasurer- No Report

Old Business:

April 26, 2022

Town Council Town of Wolcott 101 W. North Street

Wolcott, Indiana 47995

Re: Town of Wolcott (Indiana) Municipal Water Utility - Rate Analysis

Dear Town Council Members:

Baker Tilly Municipal Advisors, LLC 8365 Keystone Crossing, Ste 300

Indianapolis, IN 46240 United States of America

T: +1 (317) 465 1500

F: +1 (317) 465 1550

bakertilly.com

The attached schedules(listed below) presentunaudited and limitedinformation for the purpose of discussion and consideration in the preliminary planning stage of a proposedadjustment in water rates and charges by the appropriate officers, officials and advisors of the Town. The use of these schedules should be restrictedto this purpose, for internal use only, as the information is subject to future revisionand final report.

Page(s)

2 Comparison of Fund Balances with Minimum Balances Required/Recommended

3 - 4 Schedule of Amortization of $2,036,000 Principal Amount of Outstanding Waterworks Revenue Bonds, Series 2019

5 - 7 Pro Forma Annual Cash Operating Disbursements

8 - 9 Pro Forma Annual Revenue Requirements and Annual Operating Receipts

10 Schedule of Present and Proposed Rates and Charges

11 Comparison of Monthly Residential Bills with Other Indian Communities

We would appreciate your questions or comments on this information and would provideadditional information upon request.

Very truly yours,

BAKER TILLY MUNICIPAL ADVISORS, LLC

Jeffrey P. Rowe, Partner

Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2023 Baker Tilly Municipal Advisors, LLC

(1)Operating Fund (2)($325,735)$40,919($366,654)Sinking Fund:Bond and Interest Account (3)194,20412,605181,599Debt Service Reserve Account (4)-74,730(74,730)Depreciation Fund (5)56,96532,60024,365Meter Deposit Fund (6)19,46119,461-Utility Donation Fund (7)160160-Project Grant Fund (8)(18,227)-(18,227)Construction Fund (9)11,55111,551-2018B BANs Fund (10)88- Totals ($61,613) $192,034 ($253,647)

Cash and Cash Equivalents: 8/31/2022 Recommended Variance

Pro formaoperation and maintenance disbursements (page 6) $245,467

Times factorfor 2 months 16.67%

Required Reserve $40,919

one-twelfth (1/12)of the next succeeding principalpayment and the amount of one-sixth (1/6) of the next succeeding interest payment on the outstanding Waterworks Revenue Bonds,Series 2019.

Amount

Factor

Months

Total

Principal Due 7/1/23

$40,000

1/12

$6,667

Interest Due 1/1/23

17,815

1/6

5,938

Required Reserve

$12,605

Outstanding Waterworks RevenueBonds, Series 2019 ($74,730.10). The debt servicereserve was to be fundedwith bond proceedsat closing on the 2019 Bonds. We recommend that $74,730.10 be transferred from the Bond and InterestAccount to a Debt ServiceReserve Account accordingly.

Required Reserve $74,730

annual capital improvement expenditures for the Utility.

Required Reserve $32,600

(6) Meter Deposit Fund: Monies are restricted for return to customers.

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY

COMPARISON OF FUND BALANCES WITH MINIMUM BALANCES REQUIRED/RECOMMENDED

12 Required Reserves: Balances required per Bond Ordinance No. 2018-03.

13Operating and Maintenance Fund: The balance maintained in the operating fund should be sufficient for the paymentof the expenses of operation, repair, and maintenance of the utilityfor the next succeeding two (2) calendarmonths.

(Subject to the attached letter dated April 25, 2023) (Preliminary - Subject to Change)

(Internal Use Only)

(5) Utility Donations Fund: Fund assumed unrestricted.

(6) Project Grant Fund: Fund fullyrestricted for project costs.

(7) Construction Fund: Fund fully restricted for project costs.

(8) 2018B BANs Fund: Fund fullyrestricted for project costs.

Interest rate as shown.

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY

SCHEDULE OF AMORTIZATION OF $2,036,000 PRINCIPAL AMOUNT OF OUTSTANDING WATERWORKS REVENUE BONDS,SERIES 2019

Principal payable at annualy on July 1st.

Interest payable semi-annually on January 1st and July 1st.

(Subject to the attached letter dated April 25, 2023) (Preliminary - Subject to Change)

(Internal Use Only)

Payment DatePrincipal Balance PrincipalInterest Rate(------In $1,000's )(%) 01/01/23 $2,036 $17,815.00 $17,815.00 $17,815.0007/01/232,036$401.7517,815.0057,815.0001/01/241,99617,465.0017,465.0075,280.0007/01/241,996401.7517,465.0057,465.0001/01/251,95617,115.0017,115.0074,580.0007/01/251,956411.7517,115.0058,115.0001/01/261,91516,756.2516,756.2574,871.2507/01/261,915421.7516,756.2558,756.2501/01/271,87316,388.7516,388.7575,145.0007/01/271,873421.7516,388.7558,388.7501/01/281,83116,021.2516,021.2574,410.0007/01/281,831431.7516,021.2559,021.2501/01/291,78815,645.0015,645.0074,666.2507/01/291,788441.7515,645.0059,645.0001/01/301,74415,260.0015,260.0074,905.0007/01/301,744451.7515,260.0060,260.0001/01/311,69914,866.2514,866.2575,126.2507/01/311,699461.7514,866.2560,866.2501/01/321,65314,463.7514,463.7575,330.0007/01/321,653461.7514,463.7560,463.7501/01/331,60714,061.2514,061.2574,525.0007/01/331,607471.7514,061.2561,061.2501/01/341,56013,650.0013,650.0074,711.2507/01/341,560481.7513,650.0061,650.0001/01/351,51213,230.0013,230.0074,880.0007/01/351,512491.7513,230.0062,230.0001/01/361,46312,801.2512,801.2575,031.2507/01/361,463501.7512,801.2562,801.2501/01/371,41312,363.7512,363.7575,165.0007/01/371,413511.7512,363.7563,363.7501/01/381,36211,917.5011,917.5075,281.2507/01/381,362511.7511,917.5062,917.5001/01/391,31111,471.2511,471.2574,388.7507/01/391,311521.7511,471.2563,471.2501/01/401,25911,016.2511,016.2574,487.5007/01/401,259531.7511,016.2564,016.2501/01/411,20610,552.5010,552.5074,568.7507/01/411,206541.7510,552.5064,552.5064,552.50 $884 $545,720.00 $1,429,720.00 $1,429,720.00

(Continued on next page)

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY

SCHEDULE OF AMORTIZATION OF $2,036,000 PRINCIPAL AMOUNT OF OUTSTANDING WATERWORKS REVENUE BONDS,SERIES 2019

Principal payable at annualy on July 1st.

Interest payable semi-annually on January 1st and July 1st.

Interest rate as shown.

(Cont'd)

Payment

Principal

Interest

Debt Service

Bond Year

Date

Balance

Principal

Rate

Interest

Total

(------In $1,000's )

(%)

(-------------------------In Dollars )

Subtotals carried forward

$884

$545,720.00

$1,429,720.00

01/01/42

1,152

10,080.00

07/01/42

1,152

1.75

10,080.00

65,080.00

75,160.00

01/01/43

1,097

9,598.75

07/01/43

1,097

1.75

9,598.75

65,598.75

75,197.50

01/01/44

1,041

9,108.75

07/01/44

1,041

1.75

9,108.75

66,108.75

75,217.50

01/01/45

984

8,610.00

07/01/45

984

1.75

8,610.00

66,610.00

75,220.00

01/01/46

926

8,102.50

07/01/46

926

1.75

8,102.50

67,102.50

75,205.00

01/01/47

867

7,586.25

07/01/47

867

1.75

7,586.25

67,586.25

75,172.50

01/01/48

807

7,061.25

07/01/48

807

1.75

7,061.25

68,061.25

75,122.50

01/01/49

746

6,527.50

07/01/49

746

1.75

6,527.50

68,527.50

75,055.00

01/01/50

684

5,985.00

07/01/50

684

1.75

5,985.00

68,985.00

74,970.00

01/01/51

621

5,433.75

07/01/51

621

1.75

5,433.75

69,433.75

74,867.50

01/01/52

557

4,873.75

07/01/52

557

1.75

4,873.75

69,873.75

74,747.50

01/01/53

492

4,305.00

07/01/53

492

1.75

4,305.00

71,305.00

75,610.00

01/01/54

425

3,718.75

07/01/54

425

1.75

3,718.75

71,718.75

75,437.50

01/01/55

357

3,123.75

07/01/55

357

1.75

3,123.75

72,123.75

75,247.50

01/01/56

288

2,520.00

07/01/56

288

1.75

2,520.00

72,520.00

75,040.00

01/01/57

218

1,907.50

07/01/57

218

1.75

1,907.50

72,907.50

74,815.00

01/01/58

147

1,286.25

07/01/58

147

1.75

1,286.25

74,286.25

75,572.50

01/01/59

647.50

07/01/59

1.75

647.50

74,647.50

75,295.00

Totals

$2,036

$746,672.50

$2,782,672.50

Average annual debt service for the five bond years ending January 1, 2028 $74,857.25

(Subject to the attached letter dated April 25, 2023) (Preliminary - Subject to Change)

(Internal Use Only)

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY PRO FORMA ANNUAL CASH OPERATING DISBURSEMENTS

(See Explanation of Adjustments 6 - 7)

Test Year Ended8/31/2022AdjustmentRef.Pro FormaAnnual Operating Disbursement:Salaries and Wages $77,291$6,473(1)$83,764Employee Pensions and Benefits 34,4882,545(2)37,033Chemicals 3,6883,688Purchased Power 10,75110,751Utilities 4,4374,437Materials and Supplies 13,90413,904Contractual Services 2,7537,748(3)10,501Water Testing 3,9293,929Repairs 32,206($11,065)(4)21,141Insurance 26414,681(5)14,945Equipment 2,5652,565Telephone 4,0284,028Dues and Fees 4,5354,535Miscellaneous 4,2824,282Utility Receipts Tax 4,497(4,497)(6)-Sales Tax 14,98914,989 Subtotal: $218,607 $15,885 234,492 Unforeseen contingencies and inflation (7) 10,975 Pro Forma Annual Cash Operating Disbursements $245,467

(Preliminary - Subject to Change) (Internal Use Only)

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY

PRO FORMA ANNUAL CASH OPERATING DISBURSEMENTS

(Explanation of Adjustments)

(Cont'd)

Adjustment (1) - Salaries and Wages

To adjust test year salaries and wages to reflect management estimates of staffing levels and pay rates.

Pro forma salaries and wages $83,764

Less test year salaries and wages (77,291)

Adjustment (1) $6,473

Adjustment (2) - Employee Insurance

To adjust test year employee insurance costs to reflect twelve full months of premiums and Utility Management estimates of future premium costs.

Test year employee insurance disbursements

$15,187

Divided by 11 months

Average monthly employee insurance disbursements

1,381

Times 12 months

Normalized test year employee insurance disbursements

16,572

Times estimated percent increase

7.00%

Pro forma employee insurance disbursements

17,732

Less test year employee insurance disbursements

(15,187)

Adjustment (2)

$2,545

Adjustment (3) - Allowance for SBOA Audit and Rate Study

To provide an allowance for a State Board of Accounts examination and regular rate studies.

Estimated annual cost of audit for Water Utility (based on most recent audit)

$3,748

Estimated cost of future rate study

$12,000

Divided by 3 years

Estimated annualized cost for future rate study

4,000

Adjustment (3)

$7,748

(Subject to the attached letter dated April 25, 2023)

(Preliminary - Subject to Change)

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY

(Cont'd)

PRO FORMA ANNUAL CASH OPERATING DISBURSEMENTS

(Explanation of Adjustments)

2019 Repairs disbursements$13,1842020 Repairs disbursements17,8272021 Repairs disbursements26,3272022 Repairs disbursements through August20,179 Subtotal 77,517Divided by 44 months44 Average monthly repairs disbursements 1,762Times 12 months12 Pro forma repairs disbursements 21,141Less test year repairs disbursements(32,206) Adjustment (4) ($11,065)

Adjustment (4) - Repairs

Management, the water utility will pay for its portion of insurance costs moving forward.

2020 insurance disbursements

$13,106

Times 10% inflationary factor

10.00%

Pro forma insurance disbursements

14,417

Less test year insurance disbursements

(264)

Adjustment (5)

$14,681

To remove utility receipts tax per House Enrolled Act 1002-2022.

Adjustment (6) ($4,497)

Adjustment (5) - Insurance

Adjustment (7) - Unforeseen Contingencies and Inflation

(Internal Use Only)

To provide an allowance for unforeseen contingencies and future inflation.

(Subject to the attached letter dated April 25, 2023)

(Preliminary - Subject to Change)

To adjust test year repairs to reflect historical amounts.

Toinclude an allowance for future insurance disbursements based on historical amountsadjusted for inflation. Per Utility

Test year cash operating disbursements (excluding sales tax)$203,618Adjustments to test year cash operating disbursements15,885 Sub-total 219,503Times inflationary allowance5.0% Adjustment (7) $10,975

To provide an allowance for unforeseen contingencies and future inflation.

(Subject to the attached letter dated April 25, 2023)

(Internal Use Only)

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY

PRO FORMA ANNUAL REVENUE REQUIREMENTS

AND ANNUAL OPERATING RECEIPTS

See Explanation of References, page 9

(Amounts rounded to the nearest $100)

Revenue Requirements:

Operation and Maintenance Disbursements (page 5)

$245,500

Additional sales tax (7% of additional receipts required)

10,600

Debt Service (page 4)

74,900

Allowance for Replacements and Improvements (1)

32,600

Allowance for Cash Reserve Replenishment (2)

84,500

Total Annual Revenue Requirements 448,100

Less Interest Income (3) (200)

Less Other Receipts (4) (5,900)

Net Annual Revenue Requirements $442,000

Metered Sales (3)$205,400Fire protection (5)48,600 Total Available Receipts $254,000 Additional Receipts Required $188,000 Approximate Across-The-Board Increase In Present Rates and Charges 74% Approximate Average Residential Monthly Bill (4,000 gallons) $74.54 Change in Average Monthly Residential Bill (Current Bill $42.84) $31.70

Annual Receipts:

(Continued on next page)

(Subject to the attached letter dated April 25, 2023)

(Preliminary - Subject to Change)

(Internal Use Only)

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY

PRO FORMA ANNUAL REVENUE REQUIREMENTS

AND ANNUAL OPERATING RECEIPTS

(Explanation of References)

Based on a historical average.

Per the short-lived asset reserve requirement within the USDA Letter of Conditions dated

July 24, 2017. Does not include a separate allowance for future tank painting and maintenance.

To provide an allowance for the Utility to replenish its cash reserves over a three-year period.

Based on test year amounts.

Based on the shortfall in required and recommended reserves shown on page 2

($253,085) divided by 3.

Based on the number of public hydrants (64) times the current public hydrant rate ($760).

Note, the Town is not currently collecting these receipts. The town is collecting its private

fire protection receipts in the metered sales line item.

(Subject to the attached letter dated April 25, 2023)

(Preliminary - Subject to Change)

(Internal Use Only)

WOLCOTT (INDIANA) MUNICIPAL WATER UTILITY SCHEDULE OF PRESENT AND PROPOSED RATES AND CHARGES

Present Proposed

Rates Rates

(1) (2)

Monthly Metered Flow Rate (rate per 1,000 gallons):

First

2,000

gallons

$11.54

$20.08

6,000

gallons

9.88

17.19

12,000

gallons

8.23

14.32

30,000

gallons

6.55

11.40

50,000

gallons

4.14

7.20

Over

100,000

gallons

2.98

5.19

Minimum Charge (per month)

5/8 - 3/4

inch meter

$23.08

$40.16

inch meter

42.70

74.30

1 1/4

inch meter

63.43

110.37

1 1/2

inch meter

80.73

140.47

inch meter

98.01

170.54

inch meter

184.49

321.01

inch meter

311.34

541.73

inch meter

461.28

802.63

Fire Protection (Per Annum)

Public Hydrants

$760.00

$1,322.40

Private hydrants, each

760.00

1,322.40

Private fire protection - (automatic sprinkler systems), each

760.00

1,322.40

10 The present rates and charges were adopted by Ordinance No. 2018-10 on July 10, 2018.

11 Represents a 74% across-the-board increase in present rates and charges.

(Subject to the attached letter dated April 25, 2023) (Preliminary - Subject to Change)

Ken Smith Community Crossing Grant: The Town has been awarded $678,000.00 to repave streets. The Board was asked to approve this grant. Council Member Michael Johnson made the motion to approve the Community Crossing grant in the amount of $678,000.00 and a match of 25%. Council member Darwin Miller second the motion. Motion carried 4-0

USDA: Final Invoice for Thieneman Construction for the wastewater plant. $58,279.67. Council Member Darwin Miller made the motion to send the Invoice to USDA for final payment for Thieneman Construction.

Council Member Darwin Miller seconded the motion. Motion carried 4-0

Sale of Storage barn and enclosing of the third bay of the town garage. Council Member Darwin Miller made the motion to sell the barn and get estimates for enclosing the third bay of the garage. Council Vicw President Jerry Lietz seconded the motion. Motion carried 4-0

Complaints of Garbage Company: There have been several complaints about the service of the new Garbage company. The council decided to give them one more month. If there is no improvement, we will seek bids for a new garbage company.

Resident George Mathews: He would like something done about the geese at the pond. The Council told George that that would be his association that would need to take care of this problem.

Resident Mark Bachman: He is having problems with this water. After a long discussion. Mark was asked to

Speak to Bob Thomas, Water Superintendent.

Walt Owens: He would like to have 3rd street paved. He was told that it is on the fall round of Community Crossing grant. Walt would like to have a place to take limbs and yard rubbish to burn. He was told there is nowhere for the town to burn. It would have to be taken to Bio-Town.

Adjourn

May 3, 2023 - Council Meeting

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