Proposed 2024 Utility Rate and Trash Fee

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. 

Residential Rates are proposed as follows:

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 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 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 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.