The Noblesville Common Council unanimously voted to amend the city's wastewater and trash fee ordinances to set the following rates for the next 4 years (2024-2028):

*New rates begin September 1, 2024 reflected in the October 2024 bill.

The new rate is based on recommendations from the analysis performed by Baker Tilly, Noblesville Utilities financial advisor. Baker Tilly performed a Rate Study to advise the city on a just and equitable fee.

Using this "Set It & Forget It" approach would avoid having an annual rate/fee increase and provides a savings over the traditional step-up rate over the same time period.

• Q) When will the proposed new rates go into effect and what are the new rates for sewer and trash services? 
  • A) The proposed rates will go into effect September 1, 2024, and will be reflected on the bill mailed at the end of September, payable in October. 
• Q) When was the last time the city increased sewer and trash rates?
  • A) In 2020, the city proposed a single increase to be maintained flat over a four-year period to provide budgeting certainty and sufficient revenues to serve a growing population. The end of those four years is approaching, prompting an updated assessment of cost considerations for managing the city’s wastewater and stormwater infrastructure and providing waste collection and recycling services.
• Q) How often should I plan for a rate increase?
  • A) In 2020, the city proposed a single increase to be maintained flat over a four-year period, and the city met its promise. Similarly, the city is currently proposing a single increase that will remain flat until 2028. In our view, this approach is more transparent and means that citizens do not have to make yearly (upward) monthly budget changes. This approach also provides a longer period of time to build necessary reserves for significant capital projects and assess the overall effectiveness of the rate-setting determination as it relates to annual operating costs.  Ensuring sufficient reserves, as recommended by our financial advisor, allows us to maintain our strong bond credit rating, which saves on interest costs when the city issues bonds to pay for larger wastewater or stormwater capital projects.
• Q) How is the proposed sewer rate established?
  • A) The City of Noblesville Utilities Department worked with its outside financial advisor, Baker Tilly, to complete a rate study that projected operating costs and capital needs based on the current state of the utility system, operational data, city growth projections, and capital priorities. 

    The rate study is based on a financial model that ensures sufficient reserves to maintain our strong bond credit rating, which saves on interest costs when the city issues bonds to pay for larger wastewater or stormwater capital projects. The rate study can be found here.

• Q) How is the proposed trash rate established?
  • A) The City issued a Request for Proposals in 2020 for waste collection and recycling services.  Based on RFP responses and prices, Republic Services was selected to continue providing those services under a four-year contract that included a four-year extension option.  The City negotiated the extension option to cap increases at 3% per year if inflationary factors increased the cost of providing the services.   The City and Republic finalized the contract extension that will run through 2028, similar to the proposed sewer rate adjustment timeframe.  The updated residential fee is $15.55, which represents the aggregate cost the City will pay to Republic to provide those services, with the City absorbing bill processing and service request screening costs.  This updated fee remains below the amount it would have been had it increased based on the Consumer Price Index water-sewer-trash rate.
• Q) How do Noblesville rates compare to neighboring communities?
  • A) Unlike suburban Indianapolis communities, Noblesville stands out because it has a combined sewer area. As a county seat that built its initial sewer infrastructure earlier than many other communities, part of system management costs is due to replacement and improvement of aging pipes, force mains, gravity sewers, lift stations, and other equipment. Noblesville is completing its federally mandated combined sewer overflow Long-Term Control Plan (LTCP). This work has led to a more extensive treatment plant capacity and more significant sewer infrastructure to meet the requirements that improve environmental and public health.
    During the 1990s and early 2000s, Noblesville made significant investments in infrastructure that is now approaching the end of its expected life. The city is proactively planning for the necessary rehabilitation and replacement costs, as well as increasing capacity to accommodate current growth. Despite the challenges of high inflation and construction costs, Noblesville has effectively managed its system to keep costs low and comparable to many neighboring communities. Some of these communities have not updated their rates in several years. At the start of the Long-Term Control Plan, our financial advisor projected that estimated user rates upon completion of the five-part plan in 2022 would be around $67.00 per month. The proposed rate adjustment remains significantly lower than that earlier projection, demonstrating our commitment to managing costs.
• Q) Is assistance available?
  • A) As part of the 2020 rate increase, the city established a hardship credit that may be granted during a public health emergency. The city is now proposing to re-establish and expand the hardship credit for homeowners who may suffer financial hardship, such as unemployment, outside of a public health emergency. Additionally, residents may qualify for a property tax and utility discount. For more information on qualifying for the hardship credit or property tax utility discount, click HERE.

• BakerTilly compared figures for monthly charges passed on to residents by 16 Central Indiana cities and towns comparable to Noblesville. 

• At the beginning of implementation of the Long Term Control Plan, BakerTilly projected that estimated user rates upon completion of the LTCP in 2022 would be $66.93 per month. Noblesville has been able to keep rates much lower than initially projected - current monthly residential rate is $53.28 per month, despite having to spend $73M on unfunded mandates.

• The city is doing everything within our power to keep rates as manageable as possible. Noblesville is one of a few utilities in the state with a AA bond rating. This helps us secure lower interest rates. 

Noblesville residents may be eligible for discounts on their property taxes and city utility bills. The new rate will increase from $12 to $14 beginning September 1, reflected in the October 2024 bill. Before a deduction takes place at the city level, a property tax deduction claim has to be filed and approved by the Hamilton County Auditor’s Office. Once a deduction has been filed with the county auditor’s office, you do not need to refile unless there is a new mortgage, a deed change on the home, or the property has been put into a trust.

• NOBLESVILLE UTILITIES DISCOUNT
  A $14 discount per month is available to owner/occupants. To be eligible for the reduced rate customers must have one of the following exemptions on their property taxes (filed with the Hamilton County Auditor’s Office): 

  • Blind & Disabled Persons Exemption

  • Disabled Veterans Deduction

  • Over Age 65 Deduction or Over Age 65 Circuit Breaker Deduction

    • Assessed value of home cannot exceed a set value.

    • Adjusted gross income cannot exceed a set income.
      
      

• TRASH FEE DISCOUNT
  Noblesville Utilities customers who qualify for a $14 discount per month on their monthly sewer bill also receive a $7 discount on their trash fee. There are no additional forms to fill out or file. 

Residents will be given these discounts once their claims have been approved by the Hamilton County Auditor’s Office, and the residents bring a copy of the approved claim to Noblesville Utilities. Noblesville Utilities office is located at 197 Washington Street with operating hours Monday through Friday 8 a.m. to 4:30 p.m.

• To be granted a hardship credit, an owner-occupant of a residential parcel must provide valid documentation to the Utilities Department that shows proof that the owner-occupant has filed for any of the following:
  • Unemployment with the Indiana Department of Workforce Development;
  • Hardship accommodation with the Indiana Department of Revenue;
  • Financial assistance with the township trustee; 
  • Energy assistance through the Low Income Home Energy Assistance Program.
    

• Owners-occupants of residential parcels satisfying the requirements listed above will receive a $14 per month hardship credit, for a period of up to six (6) months, beginning the next billing cycle after documentation is provided. The hardship credit will not be applied retroactively.
  
  
• If the owner-occupant receiving the hardship credit moves to another residential parcel, the owner-occupant may continue to receive the hardship credit on their new residential parcel account if they still meet the qualifications.
  
  
• All credits provided by the City of Noblesville may be granted up to an aggregate total maximum hardship credit amount of $250,000. If at any time the application of the hardship credits would exceed the cap, all outstanding requests for assistance shall be issued on a pro-rata basis of the remaining available credits up to the Hardship Credit Cap for any period.
  
  
• This program will expire on August 21, 2026 if allocated funds are available.

• The city issued a request for bid proposals earlier this year as our current contract expired on May 31, and Republic Waste Services was the lowest responsible bidder.
  
  
• The city's 4-year average monthly cost for providing residential trash collection services will be $15.55. 
  
  
• By keeping Republic Services, Noblesville residents will see no change in their weekly trash pick-up dates or services. 
  
  
• Although the ultimate impact will depend on the commodities market, Noblesville is the among the first communities in the state to negotiate a profit-sharing component with Republic for our recyclables collected.